20121119 1116 Local & Global Economy Related News.

Malaysia: GDP grew by 5.2% in 3Q, driven by domestic demand
Malaysia’s GDP expanded by 5.2% in the 3Q of this year, as compared to 5.8% a year ago and 5.6% in the 2Q of 2012. The 3Q growth figure this year exceeds consensus’s estimate of 4.7%. During the quarter under review, domestic demand expanded by 11.4%. (Financial Daily)

China: Home prices gain in half the cities tracked as market steadies
China’s new home prices rose in October in more cities than the previous month, indicating the government will refrain from relaxing curbs on the property market. Prices climbed in 35 of the 70 cities the government tracks, compared with 31 in September, according to data from the statistics bureau. Prices fell in 17 cities. Investors are gauging the government’s policy direction on real estate, rolled out over two years to rein in surging home prices that raised concerns about affordability, after the Communist Party unveiled the new generation of leaders last week. (Bloomberg)

Spain: 10-Year bonds decline as Euro-area slips into recession
Spanish bonds fell, pushing 10-year yields to the highest level in six weeks, as a euro-area report showed the region’s economy contracted in the 3Q, pushing it into recession. Spain’s 10-year yield climbed for a fourth consecutive week, the longest run of increases since June, as the nation’s government refrained from asking for aid from the European Central Bank’s Outright Monetary Transactions program. (Bloomberg)

US: Record-low mortgage rates may lift housing
The lowest mortgage rates on record probably helped keep sales of previously-owned US homes close to a two-year high in October, and underpinned construction of new residences, economists said. Purchases of existing dwellings held at a 4.75m annual rate last month, according to the median forecast in a Bloomberg survey. (Bloomberg)

US: Sandy cuts US output while overseas demand cools
Industrial production unexpectedly fell in October as superstorm Sandy disrupted output of goods from food to chemicals, adding to the woes of companies contending with cooling global demand. Production at factories, mines and utilities dropped 0.4% after a revised 0.2% increase in September that was smaller than previously estimated, Federal Reserve data showed. Economists projected a 0.2% gain, according to the median forecast in a Bloomberg survey. (Bloomberg)

US: Foreign demand for US assets sinks on Europe easing, QE3
International purchases of US financial assets plunged 96% in September as confidence grew that Europe was beginning to solve its debt crisis and investors sold Treasuries following the Federal Reserve’s quantitative easing announcement. Net buying of long-term equities, notes and bonds totalled USD3.3bn during the month, down from net purchases of USD90.3bn in August, the Treasury Department said. Economists surveyed by Bloomberg projected net buying of USD50bn of long-term assets, according to the median estimate. (Bloomberg)