20120409 1217 Local & Global Economy Related News.

Bank Negara Malaysia’s (BNM) international reserves amounted to RM416.1bn (US$135.7bn) as at 31 Mar, up from RM427bn (US$134.8bn) as at 15 Mar. The reserves were sufficient to finance 9.4 months of retained imports and was four times the short-term external debt. (BNM)

Car sales in Indonesia increased by 10.6% yoy in 1Q12 to 249,589 units on the back of strong consumer purchasing power, a senior official from the Indonesian Automotive Industry Association said. (Jakarta Globe)

The China Banking Regulatory Commission is preparing a new round of checks on bank charges after 12 banks failed to publicize their service fees as required by the end of Mar. (People’s Daily)

China's big four state banks extended almost Rmb300bn (US$47.5bn) in new local-currency loans last month, the official Securities Times reported, citing unidentified sources. (Reuters)

Vietnam's central bank will reduce the deposit rate cap to 12% from 13%, in line with its target to bring the ceiling to 10% by year-end to ease burdens on businesses. (Reuters)

Vietnamese inflation expectations have come down sharply given a drastic slowdown in the CPI growth in 1Q12 against Dec 2011, said Ministry of Industry and Trade’s Domestic Market Department head Vo Van Quyen. (The Saigon Times)

Vietnam’s General Statistics Office reported that due to the property-market slump, unsold stocks in the construction materials industry have increased by 21% this year. (Vietnam News)

Thailand’s Real Estate Broker Association has revealed that prices of pre-owned houses have dropped by 10-30%, as supplies surge after the flood. (Thai Financial Post)

Thailand’s Cabinet is expected tomorrow to approve THB20bn for pay hikes to ensure fairness for existing civil servants after the starting salary for new hires was hiked to THB15,000 in Jan. (The Nation)

Japan and China will seek to coordinate on supporting the IMF’s effort to contain Europe’s debt crisis, Japanese Finance Minister Jun Azumi said. (Bloomberg)

Japan's index of coincident economic indicators rose in Feb to 96.6 from 94.5 in Jan, the fourth straight month of increase. Economists expected a reading of 95.8. (RTTNews)

Japan: Bank of Japan seen adding stimulus on nominee rejection
The Bank of Japan may expand stimulus this month after law makers escalated pressure for extra action by blocking a candidate for the bank’s board and renewing calls for a more “proactive” monetary policy. Parliament’s upper house rejected economist Ryutaro Kono, described as holding similar views to Governor Masaaki Shirakawa, who says that monetary policy alone cannot solve deflation. The central bank may stand pat at a two-day meeting ending 10 April, preserving ammunition for later in the month, when price projections will show a goal of 1% inflation is not in sight. (Bloomberg)

Canada: Jobs grow most since 2008 as firms add full timers
Canada added the most jobs since September 2008 last month, a gain dominated by full-time positions that revived what had been a stalling labor market in the world’s 10th largest economy. Employment rose by 82,300 following a decline of 2,800 in February, lowering the jobless rate to 7.2% from 7.4%.Employment growth should add to household spending that the Bank of Canada said last month has been rising faster than expected. Full-time employment in Canada jumped by 70,000 in March while part-time positions grew by 12,400. About 42,600 jobs were created by private companies and 20,900 in the public sector. Average hourly earnings of permanent employees rose 2.5% in March y-o-y, faster than last month’s 2.1%. (Bloomberg)

US: Employment increase in US trails most-pessimistic forecasts
Hiring by American employers trailed the most pessimistic forecasts in March, casting doubt on the strength of the expansion now in its third year. The 120,000 increase in payrolls was the smallest in five months. The data also showed the unemployment rate fell to 8.2% as people left the labor force, while workers put in fewer hours. The figures followed an average 246,000 increase in payrolls in the previous three months. Estimates ranged from increases of 175,000 to 250,000. The March data showed a 34,000 decrease in retail employment. February data, meanwhile, rose a revised 240,000. Employment at service providers increased 89,000 last month, less than half the 211,000 gain in February. Professional and business service payrolls rose 31,000 last month, restrained by a 7,500 drop in temporary hiring. Manufacturing was among the few industries that added more jobs than in February, with a 37,000 increase. (Bloomberg)

US: Jobless claims fell to lowest level in four years
Claims for US unemployment benefits dropped last week to the lowest level in four years. Jobless claims fell 6,000 to 357,000 in the week ended 31 March, the fewest since April 2008. The number of people on unemployment benefit rolls also dropped, while those getting extended payments increased. The unemployment rate among people eligible for benefits, which tends to track the jobless rate, held at 2.6%. 26 states and territories reported a decline in claims, while 27 reported an increase. (Bloomberg)

US: Consumer credit rose less than forecast in February
US consumer borrowing rose less than forecast in February, restrained by a drop in credit-card debt. Credit increased USD8.7bn, the least in four months, after a revised USD18.6bn gain in January that was more than initially estimated. Smaller gains in borrowing indicate American households are continuing to pay down debt or are less optimistic about their finances. The Fed’s statistics showed revolving debt, which comprises credit cards, fell USD2.2bn in February after a USD3bn drop a month earlier. Non-revolving debt, including educational loans and borrowing for autos and mobile homes, climbed by USD10.9bn in February, the smallest gain in four months. (Bloomberg)