20100428 1232 Global Economic News.

US Conference Board consumer confidence index soared to a 18-month high of 57.9 in April (vs. 52.3 in March), above market expectations of 53.5. The Present situation index rose to 28.6 vs 25.2, Expectations rose to 77.4 vs. 70.4. Most regions improved, except for the South. Buying plans rose for autos and appliances. Concerns about business and job market conditions continued to ease, said Conference Board director Lynn Franco. She added that "continued job growth" will really be the key to keeping the momentum going. (Xinhua, CNN Money)

US home prices inched up 0.6% yoy in February according to the S&P/Case-Shiller 20- city index, with nine of the 20 cities showing gains. "The homebuyer tax credit, available until the end of April, is the likely cause for these encouraging numbers," said David Blitzer, chairman of the index committee at S&P. But home prices actually fell by 0.9% mom. The dip was small enough to put prices in positive territory compared with 12 months earlier, when home prices were falling very steeply. (CNN Money)

US congress must craft a credible plan soon to bring spending in line with revenue to close the unsustainable fiscal gap threatening the economy, key policymakers urged. "The path forward contains many difficult tradeoffs and choices, but postponing those choices and failing to put the nation's finances on a sustainable long-run trajectory would ultimately do great damage to our economy," Federal Reserve Chairman Ben Bernanke told a bipartisan panel charged with proposing ways to curb deficits. (CNN Money)

Hong Kong’s exports grew in Mar 10 at the fastest pace since 1992 on demand within Asia and an improving global economy. Shipments rose 32.1% yoy to HK$231.8bn (US$29.9bn), after gaining 28.5% in February. That topped the median estimate for a 25.2% gain in a survey. (Bloomberg)

Europe’s worsening debt crisis is intensifying pressure on policy makers to widen a bailout package beyond Greece after a cut in the nation’s rating to junk drove up borrowing costs from Italy to Portugal and Ireland. As German Chancellor Angela Merkel delays approval of a EUR45bn (US$59bn) Greek rescue, the crisis is spreading. Portugal’s benchmark stock index yesterday fell the most since the aftermath of Lehman Brothers Holdings Inc.’s collapse, while the extra yield that investors demand to hold Italian and Irish debt over bunds rose to a 10-month high. (Bloomberg)

South Korea’s current-account surplus advanced to a four-month high in Mar 10 as the global economic recovery spurred overseas demand for cars, semiconductors and petrochemicals. The surplus was US$1.69bn, the largest since Nov 09, from a revised US$167.6m in February. (Bloomberg)

Greece’s deepening financial crisis serves as a lesson for Japan, which needs to devise a “credible” fiscal plan to curtail the world’s largest public debt, an International Monetary Fund official said. “I don’t think the threat of a spillover from Greece will impact Japan for the moment,” Naoyuki Shinohara, deputy managing director at the International Monetary Fund, said in an interview in Washington yesterday.

• Japan’s finances have come under scrutiny since January, when Standard and Poor’s cut the outlook of the nation’s AA rating to “negative.” Prime Minister Yukio Hatoyama’s government will unveil a fiscal plan in June to address a debt burden the Organization for Economic Cooperation and Development estimates is approaching 200% of gross domestic product. (Bloomberg)

Thailand’s economy may have grown between 8%-9% in 1Q as the global economic recovery boosted export orders, finance ministry spokesman Ekniti Nitithanprapas said. The first quarter wasn’t significantly impacted by political protests in Bangkok. Still, economic growth may slow in the second quarter, Ekiniti said.

Thailand’s tourist arrivals may fall as much as 10% this year as visitors shun the nation after anti-government protests turned violent, the Tourism Council of Thailand said. The number of foreign tourists may drop to as low as 12.7m, compared with 14.1m last year. The nation may lose as much as THB100bn (US$3.1bn) in tourism revenue, the industry body’s President, Kongkrit Hiranyakit, said. (Bloomberg)

Thailand’s Cabinet approved its fiscal budget for next year, and plans to increase spending by 22% percent to help bolster the economy amid political turmoil. The government plans to spend THB2.07tr in the 2011 budget period, which will start Oct. 1. The budget proposal will be discussed by Cabinet again on May 11 before being forwarded to the parliament for approval. (Bloomberg)

Greece’s credit rating was cut three steps to junk by Standard and Poor’s, the first time a euro member has lost its investment grade since the currency’s 1999 debut. Greece was lowered to BB+ from BBB+ by S&P, which also warned that bondholders could recover as little as 30% of their initial investment if the country restructures its debt. (Bloomberg)

Singapore’s visitor arrivals registered a 17.3% yoy growth to reach 928,000 in March (24.2%in Feb), It marked the highest ever recorded in the month of March and the fourth consecutive month of record visitor arrivals. (Bernama, Bloomberg)

Vietnam’s exports rose 8.9% yoy to US$20.1bn in January - April (-1.6% in Jan-Mar). Despite upbeat signs for exports, economists have remain worried about the trade deficit, which hit US$4.65 bn for the first four months, or 23.0% of the total export value. (Bloomberg)