Malaysia: Malaysia holds policy rate as Europe crisis imperils growth
Malaysia left interest rates unchanged for a third straight meeting as Bank Negara Malaysia kept the benchmark overnight policy rate at 3%, it said in a statement in Kuala Lumpur last Friday. Malaysia joins nations from South Korea to China in leaving borrowing costs unchanged to sustain spending at home, as the turmoil in Europe threatens to engulf Italy and further weaken the global recovery. The Southeast Asian nation’s inflation rate of 3.45 in September was close to a 27-month high, reducing its scope to follow Indonesia’s rate cut. Malaysia’s 3rd quarter GDP numbers is expected to be released this Friday. [Bloomberg]
China: Easing leads to steepest yield curve since May
China’s long-term bonds are offering investors the biggest yield advantage over shorter-maturity notes in six months as Premier Wen Jiabao relaxes lending curbs to combat a slowdown in Asia’s biggest economy. The gap between the government’s one-year note yields and 10-year securities widened to 102 basis points on 11 Nov from 62 at the start of the month, Chinabond data show. That’s the most since 4 May. The difference in US Treasuries with similar maturities narrowed three basis points since October to 198, while the so-called yield curve for Indian bonds shrank two to 19, according to data compiled by Bloomberg. [Bloomberg]
China: New loans rise more than expected in loosening signal. China's lending jumped by more than analysts forecast in October, signaling that the government may be loosening loan quotas to support growth in the world's second-biggest economy. Local-currency lending was CNY 586.8b (USD 92.5b), the People's Bank of China said in a statement on its website. That was the highest since June and exceeded all 18 estimates in a Bloomberg News survey that had a median forecast of CNY 500b. M2, a measure of money supply, rose 12.9% YoY. (Source: Bloomberg)
India: September industrial production rises 1.9% YoY. The median of 27 estimates in a Bloomberg News survey was for a 3.5% YoY increase. (Source: Bloomberg)
Korea: Bank of Korea leaves key interest rate unchanged at 3.25%. The decision was predicted by all 17 economists surveyed by Bloomberg News. (Source: Bloomberg)
Hong Kong: Dodges recession as Europe’s crisis slows exports
Hong Kong’s economy grew 0.1% in the third quarter from the previous three months as low unemployment and tourists from China boosted consumption while Europe’s crisis dragged on exports. Asian policy makers are weighing steps to support growth as Europe’s debt crisis threatens to engulf Italy and trigger a global slump. The GDP number showed Hong Kong skirting a technical recession, defined as two straight quarters of contraction. Chief Executive Donald Tsang warned this week in New York that there’s a 50% chance the global economy will shrink next year. [Bloomberg]
New Zealand: Retail sales rise most since 2006 on rugby fan spending
New Zealand retail sales increased the most in 4 1/2 years last quarter, boosted by spending from tourists visiting the Rugby World Cup. The currency climbed against most of its 16 major counterparts. Sales adjusted for inflation surged 2.2% in the third quarter, compared with the three months ended 30 June, when they gained a revised 1%, Statistics New Zealand said in Wellington. The gain is more than three times the 0.6% median estimate of 12 economists in a Bloomberg News survey and is the largest since the fourth quarter of 2006. [Bloomberg]
EU: Berlusconi resigns as Monti prepares new Italian government
Prime Minister Silvio Berlusconi, who dominated Italian politics for almost two decades, stepped down as the fallout from his legal woes and contagion from the euro-region’s debt crisis led his government to unravel. Berlusconi presented his resignation last night to President Giorgio Napolitano after the Parliament in Rome approved measures to spur growth and reduce the euro-area’s second-biggest debt. Napolitano will ask former European Union Competition Commissioner Mario Monti to form a government after talks with political parties that began at 9 am. [Bloomberg]
US: Obama puts pressure on China as US asserts Asia influence
President Barack Obama used his role as host of the Asia-Pacific Economic Cooperation summit to pressure China on currency and intellectual property rights while telling voters that nations in the region are counting on US leadership. Obama told Chinese President Hu Jintao that the American public and businesses are growing “increasingly impatient and frustrated” with the pace of progress in relations between the two nations, said Michael Froman, White House deputy national security adviser. The outreach is spurred by the rising commercial importance of the region and by China’s mounting economic and military power. [Bloomberg]
Wall Street gains for week as Italy fears ebb
US stocks jumped on Friday, ending higher for the week after the Italian Senate's approval of economic reforms gave investors some relief from worries about the euro zone's debt crisis. Banks were among the leaders on a day when growth-oriented stocks turned in the strongest performance. Sentiment received a big boost from falling Italian bond yields, which earlier this week hit the highest level since the euro was introduced in 1999. Dow Jones industrial average was up 259.89 points, or 2.19%, to end at 12,153.68. The Standard & Poor's 500 Index was up 24.16 points, or 1.95%, to finish at 1,263.85. The Nasdaq Composite Index was up 53.60 points, or 2.04%, to close at 2,678.75. (Financial Daily)
U.S. Michigan sentiment index increased more than forecast in November, offering additional support to the biggest part of the economy. The Thomson Reuters/University of Michigan preliminary index of consumer sentiment climbed to 64.2 this month, the highest since June, from 60.9 in October. (Source: Bloomberg)
U.K: Producer- price inflation eased in October to the lowest in five months after commodity costs declined from records reached earlier this year and global demand weakened. The cost of goods at factory gates was flat on the month and the annual rate of inflation eased to 5.7% YoY from 6.3% YoY in September. That's the slowest annual pace since May. (Source: Bloomberg)
No comments:
Post a Comment