Outside Malaysia

US stocks drop as real estate, raw-material shares lead losses

US stocks fell as all 11 groups in the S&P 500 Index slid, with real estate and raw-material companies leading the decline. The S&P 500 Index lost 0.8% to 2,249.92. The Dow fell 111.36 points (0.6%) to 19,833.68.

Pending US existing-home sales fall on higher mortgage rates

Contracts to purchase previously owned US homes unexpectedly decreased in November on a sudden pickup in mortgage rates and limited inventory, according to figures from the National Association of Realtors. Pending home sales gauge declined 2.5% after rising 0.1% the prior month. The median forecast in a Bloomberg survey was for 0.5% gain.

Italian manufacturing confidence rises to highest in a year

Italian manufacturing sentiment rose to the highest in a year, as the government tries to put the economic recovery on a steady upward path. The business gauge climbed in December to 103.5 from a revised 102.2 last month, statistics agency Istat said. The median estimate in a Bloomberg survey called for a reading of 101.8.

Japan November industrial output rises most in five months

Japan’s industrial output rose the most in five months in November as export volumes rebounded sharply, pointing to an expected economic expansion in 4Q16. Industrial production rose 1.5% mom in November. The median forecast in a Bloomberg survey called for a 1.7% gain.

S.Korea government cuts 2017 growth projection to 2.6% from 3%

The South Korean government cut its growth projection for next year to 2.6% from 3%, reflecting tepid domestic consumption and weak exports. The government will maintain loose fiscal policy and pressure state-run companies to spend more in an effort to shore up sagging consumer and business sentiment, the Ministry of Strategy and Finance said in its report on 2017 economic policy.

China banking official urges cut to required reserve ratio

China’s requirement for how much cash banks must hold as reserves is “very high” and should be reduced at an “appropriate time,” a senior banking regulator said. Other financing tools can be used to manage the money supply after easing the required reserve ratio, China Banking Regulatory Commission official Yu Xuejun said. New monetary tools such as the medium-term lending facility are best used after a cut, not before, Yu said. The People’s Bank of China (PBOC) has held the RRR at 17% since February after four cuts last year.

Vietnam defies Asia slowdown as economic growth holds above 6%

Vietnam’s economy expanded more than 6% for a second year, defying a regional slowdown to remain one of the world’s best performers as manufacturing surged. Gross domestic product increased 6.68% yoy in 4Q16, up from 6.56% in 3Q16, the General Statistics Office said. The economy grew 6.21% in 2016, compared with the median estimate of 6.3% in a Bloomberg survey.

WTI retreats from 17-month high after report of US supply gain

WTI futures fell from the highest close in 17 months as an industry report was said to show US crude stockpiles climbed last week. Meanwhile, Brent for February settlement rose US$0.13 to US$56.22 a barrel.

Source: Affin Hwang Research - 29 Dec 2016