20100909 1149 Local & Global Economic News.

Malaysia: Ringgit ends at highest level in 13 years
The ringgit closed at its highest level in 13 years yesterday against the US dollar in line with other high-riding Asian currencies, dealers said. At 5pm, it touched a fresh 13-year high of 3.1110/1140 against the greenback, compared with a closing of 3.1230/1260 on Tuesday. A dealer said Asian currencies were in demand on optimism that Asian economic growth would be better than in other regions. (BT)

China: Trade surplus may exceed USD20bn, stoking tension
China may say that its trade surplus topped USD20bn for a third month in August in a report that risks stoking American lawmakers’ calls for protection from Chinese import. Exports probably exceeded imports by USD26.9bn, compared with USD15.7bn in the same month a year earlier, according to the median of 34 forecasts in a Bloomberg News survey. Shipments abroad gained 35% and imports grew 27.5%, according to the survey. (Bloomberg)

China: Should let markets drive yuan up, Geithner says
US Treasury Secretary Timothy F.Geithner said Chinese officials need to allow the yuan to rise more quickly against the dollar, in order to show China’s trading partners that the world’s second largest economy is following through on its promises. “Frankly they haven’t let the currency move very much so far,” he said in an interview. “They know they’re just at the beginning of that process and I think we’d like to see them move more quickly.” (Bloomberg)

Japan: Noda says ready to act as yen reaches 15-year high
Japanese Finance Minister Yoshihiko Noda said he is prepared to take “bold” action on currencies, including intervention in foreign-exchange markets, after the yen reached a 15-year high against the dollar. “We will take bold action if necessary and naturally that can include intervention,” he told lawmakers in parliament. “We have to use every option available as a strong yen is likely to have a severe impact on companies.” (Bloomberg)

Japan: Machine orders gain, backing BOJ pause on adding stimulus
Japan’s machinery orders and current account surplus exceeded forecasts in July even as the yen appreciated, supporting the central bank’s decision to hold off from further monetary easing. Orders rose 8.8% from June, the biggest gain this year, the Cabinet Office said in Tokyo. July’s current-account surplus widened 26% from a year earlier to 1.676 trillion yen (USD20bn), a separate report showed. (Bloomberg)

UK: House prices unexpectedly rose in August, Halifax says
UK house prices unexpectedly rose for a second month in August as a strengthening economy helped support demand, Halifax said. The average cost of a home rose 0.2% from July, when it gained 0.7%, the mortgage lending division of Lloyds Banking Group Plc said in a statement. Economists had forecast a 0.5% decline, based on the median of 12 estimates in a Bloomberg News survey. From a year earlier, prices rose 4.4% to an average 167,953 pounds (USD259,219). (Bloomberg)

US: Obama says progress on economy is 'painfully slow'
President Barack Obama said Republicans are advocating the same “flawed policies” that contributed to the worst recession since the 1930s and that the nation can’t afford to extend tax cuts for the wealthiest Americans. Obama said he recognizes that the recovery has been “painfully slow,” and he called on Congress to enact measures to cut taxes for businesses and middle-income Americans while letting rates rise for the richest taxpayers. (Bloomberg)