Malaysia

Malaysia Vehicle Sales Rise In July. Sales of passenger and commercial vehicles in July increased to 68,431 from 59,459 units a year earlier, according to the Malaysian Automotive Association (MAA). In a statement yesterday, MAA said that passenger vehicles recorded higher sales of 61,032 compared with 552,073 units last year, while sales of commercial vehicles rose to 7,399 from 7,386 units. It said July’s sales volume was 14,800 units, or 28%, higher than the previous month. “July’s total industry volume (TIV) was the highest monthly TIV ever achieved over the last four years due to the rush for deliveries in conjunction with Hari Raya celebration and the launch of new models,” it said. (Bernama)

Bank Negara Global Reserves At RM438.3b. Bank Negara Malaysia’s international reserves amounted to RM438.3 billion or US$137.9 billion, as at August 15 2013. The central bank said the reserves position is sufficient to finance 9.6 months of retained imports and is 3.8 times the short-term external debt. (Business Times)

Asia

China Manufacturing Activity Sees Sharp Rebound. China's manufacturing activity rebounded in August, a preliminary survey by HSBC has indicated, easing fears of a slowdown in its economy. The bank's Purchasing Managers' Index (PMI), a key gauge of the sector's health, rose to 50.1 from 47.7 in July. A reading above 50 shows expansion. For the first time in four months, the HSBC reading has passed that point. China has taken various steps in recent weeks to boost its economic growth - which has slowed for two quarters. (BBC)

USA

US Manufacturing Growth 'At Five-Month High'. Activity in the US manufacturing sector grew at its fastest pace for five months in August, with a pick-up in new orders, a survey has indicated. Markit's purchasing managers' index (PMI) rose to 53.9, up from 53.7 in July and its best showing since March. A reading above 50 indicates growth. The index for new orders rose to 56.5, a seven-month high, from 55.5 in July. (BBC)

U.S. Jobless Claims Fell To Five-Year Low Over Past Month. The fewest workers in more than five years applied for U.S. unemployment benefits over the past month, indicating the labor market continues to improve. The number of claims in the month ended Aug. 17 declined to 330,500 a week on average, the least since November 2007, a Labor Department report showed today in Washington. Compared with a week earlier, claims rose by 13,000 to 336,000, in line with the median forecast of 48 economists surveyed by Bloomberg. (Bloomberg)

Leading Index Signals U.S. Growth To Pick Up Into 2014. The index of U.S. leading indicators climbed in July by the most in three months, signaling improvements in housing and labor markets will help foster faster economic growth through year-end. The Conference Board’s gauge of the outlook for the next three to six months increased 0.6 % after no change in June, the New Yorkbased roup said today. Another report showed the fewest Americans since November 2007 filed applications for unemployment benefits in the past month. (Bloomberg)

Consumer Comfort In U.S. Declined Last Week To Two-Month Low. Consumer confidence fell last week to the lowest level in two months as Americans’ views on the economy deteriorated. The Bloomberg Consumer Comfort Index fell to minus 28.8 for the period ended Aug. 18 from minus 26.6. The two-week decrease from a more than five-year high reached in early August has been the steepest in a year. The monthly Bloomberg consumer economic expectations gauge held in August at minus 5, a five-month low. (Bloomberg)

Europe

Eurozone Growth Hits 26-Month High, Says PMI Survey. Eurozone business activity grew at its fastest pace for 26 months in August, according to a closely-watched survey. The Markit composite purchasing managers' index - which includes manufacturing and services - rose to 51.7 points, from 50.5 in July. A number higher than 50 indicates growth. Markit said the PMI for the services sector, which accounts for the bulk of economic activity, rose to 51 in August to a 24-month high, from 49.8 in July. The manufacturing sector PMI hit a 26-month high of 51.3 points, up from 50.3 in July. (BBC)

Currencies

Dollar Follows Bond Yields Higher After Data. The U.S. dollar followed benchmark U.S. Treasury yields higher against its rival currencies Thursday, despite a slew of mixed economic data. The ICE U.S. Dollar index, a gauge of the dollar’s strength against six key currencies held onto its gains to register at 81.480, up from 81.213 in the previous session. Meanwhile, the U.S. dollar gained against the Japanese yen and the British pound on Thursday. The dollar traded at ¥98.71, up from ¥97.77 on Wednesday, while sterling fetched $1.5585, down from $1.5620. However, the greenback didn’t make any headway against the euro as the shared European currency gained slightly to $1.3358 against yesterday’s close of $1.3342. The dollar hit a high of 65.548 rupees in the Asian session Thursday before pulling back to 64.48 rupees. The Australian dollar bought 90.13 U.S. cents after HSBC said its preliminary August reading of manufacturing activity in China rose to a four-month high. That’s up from 89.55 cents just before the data. (Market Watch)

Commodities

Oil Edges Up On Strong China, Euro Zone Data. U.S. crude oil rose more than $1 on Thursday, while Brent crude rose less and its premium over U.S. crude narrowed by more than $1 in a lightly traded session. October Brent crude rose 9 cents a barrel to settle at $109.90. U.S. crude gained $1.18 to settle at $105.03, and continued to rise in post-settlement trade. The U.S. crude oil benchmark, West Texas Intermediate, stood at a $4.87 per barrel discount to Brent, narrowing more than $1 from its widest point of the session, $6.08. (Reuters)

Gold Up After Chinese PMI Data, Downside Risk Seen. Gold rose on Thursday as bullish Chinese manufacturing data boosted the nation's inflation-hedge appeal, but bullion's gains looked vulnerable as a better global economy and the U.S. Federal Reserve's planned stimulus scale-back could weigh down prices. Spot gold rose 0.5 % to $1,372.06 an ounce by 2:04 p.m. EDT (1804 GMT) after rising as much as 1 %. Platinum was up 1.9 % to $1,535.74 an ounce, while palladium gained 1.5 % to $752.35 an ounce. Silver added 0.8 % to $23.03 an ounce. (Reuters)