20100312 0912 Global Economic News.

The US trade deficit unexpectedly narrowed in January as imports fell for the first time in five months. The gap shrank 6.6% to –US$37.3bn (-US$39.9bn in Dec 09) as refineries imported the fewest barrels of crude oil in a decade. Exports decreased for the first time in nine months, on fewer shipments of aircraft and autos. (Bloomberg)

US initial jobless claims fell 6,000 to 462,000 in 6 Mar week after seasonal adjustment. The level was just slightly above the 460,000 level expected by the market. The number of people filing continuing claims jumped 37,000 to 4,558,000 in the week ended 27 Feb. Economists were expecting continuing claims to remain unchanged at 4,500,000. (CNN Money, Xinhua)

The net worth of American households increased slightly during the final three months of 2009, the Federal Reserve said.

• Household net worth, the difference between assets and liabilities, rose to US$54.2tr in 4Q09, up from US$53.5tr in 3Q09. It was the third consecutive quarterly increase, but the figure remains well below the highs of just two years ago. In the second quarter of 2007, net worth peaked at US$65.3tr. 
• For 2009 as a whole, household net rose US$2.8tr, compared with a decline of US$11.2tr in all of 2008. The rebound in household net worth came as the value of Americans' investment portfolios continued to increase. Stock holdings jumped nearly 4.0% to US$7.7tr. However, real estate values rose less than 1.0%. (CNN Money)

European Central Bank (ECB) council member Yves Mersch said the economic recovery in the 16 nations that share the euro will probably be uneven. “Available data suggest the economic recovery process in the Eurozone has started, though the upswing will most likely remain erratic. Risks to this outlook are balanced in a climate that continues to be marked by uncertainty,” Mersch said. (Bloomberg)

Japan’s economy expanded 3.8% yoy in 4Q09, which was less than initially estimated 4.6% as companies pared spending and stockpiles as deflation deepened. On a qoq basis, economy grew 0.9% in 4Q09, slower than the 1.1% first reported. The GDP deflator, a gauge of price trends, fell a record 2.8%. (Bloomberg)

Japan’s central bank may seek, next week, to counter a contraction of its balance sheet caused by the month-end expiration of an emergency-credit program as deflation persists. The Bank of Japan’s options include expanding a ¥10.0tr (US$111.0bn) fund providing loans to banks. (Bloomberg)

Bank of Korea (BOK) Governor Lee Seong Tae kept interest rates unchanged at his final meeting, leaving it to his successor to address political pressure to stoke economic growth. The seven-day repurchase rate kept at a record-low 2.0%, as expected by economists. (Bloomberg)

China’s consumer price reached a 16-month high of 2.7% yoy in February (1.5% in Jan). Industrial production climbed 12.8% yoy in February and accumulated 20.7% in Jan-Feb this year, marking the highest increase in more than five years. Retail sales registered a 22.1% yoy growth in February, beating the market consensus for a 18.1% yoy gain and fueled by Lunar New Year consumption and the nation's stimulus measures. (Bloomberg, Xinhua)

The Singapore Tourism Board (STB) forecasts tourism figures this year to increase from 9.7m visitors in 2009 to 11.5-12.5m visitors and S$17.5-18.5bn in tourism receipts. Ken Low, assistant chief executive of STB’s marketing group said that the increase was on the back of recovering global economy, major events and the launch of integrated resorts (IRs). “They (IRs) are our trump cards. We anticipate they will contribute about S$2.8bn or 2.8% of GDP by 2015,” he said. (Financial Daily)

Thailand’s consumer confidence fell to 70.9 in February (71.9 in Jan). This was the first drop in four months on concern political tensions may derail the nation’s economic recovery. (Bloomberg)

Indonesia’s central bank raised its estimate for economic growth this year to as much as 6.0% from an earlier forecast of 5.6%, Deputy Governor Hartadi A. Sarwono said. Expansion in 2011 may be 6.0-6.5%. The outlook is supported by domestic demand and the global economic recovery. The growth forecast for the first quarter was raised to 5.7% from 4.8%. Inflation rate may average between 4.0-6.0% this year compared with an average of 2.8% in 2009. (Bloomberg)

The Philippine central bank pared back a lending program for banks and said it will consider doing more to reduce cash in the economy, even as it kept interest rates at a record low at 4.0% for a sixth straight meeting. Bangko Sentral ng Pilipinas reduced the budget for the so-called rediscounting facility to PHP40.0bn (US$875.0m) from PHP60.0bn, effective 15 Mar 10. Deputy Governor Diwa Guinigundo said that they will consider in the future unwinding the remaining liquidity measures. (Bloomberg)