Malaysia

 Fiscal Policy Panel Meeting To Discuss Nation's Economic Position. The fiscal policy committee will meet next week to discuss the country's current economic position, said Second Finance Minister Datuk SeriAhmad Husni Mohamad Hanadzlah. Ahmad Husni said the meeting would table for approval various initiatives and available options to ensure Malaysia's economy would be strong and sustainable. "Prime Minister Datuk Seri Najib Razak would announce the outcome of the meeting," he told reporters. On the fiscal policy, he said, the Finance Ministry was looking at ways to enhance the trade. (The Star)

 Bank Negara Says No Need Yet To Intervene In Forex Market. It is not yet necessary for Bank Negara to intervene in the foreign exchange market to stabilise the weakening ringgit, according to its governor Tan Sri Dr Zeti Akhtar Aziz. “What is important for us is to ensure orderly market conditions. We do not focus on any specific level of exchange rate,” Zeti said. She said Bank Negara would only step in and intervene if it reckoned there were disruptive elements and disorderliness in the country’s financial markets. “Otherwise, it (the rate) will be determined by the market,” she told reporters. (The Star)

Asia

 Japan’s Debt-Funding Costs To Hit US$257bil. Japan expects to spend a record US$257 billion to service its debt during the next fiscal year, a document obtained by Reuters showed, underscoring the huge burden created by the government's borrowings. The amount to be allocated for debt-servicing for the year that will begin on April 1 is nearly as large as the gross domestic product of Singapore, which the World Bankput at US$275bil at the end of 2012. Japan's Ministry of Finance (MOF), charged with drafting the state budget and issuing government bonds, will request 25.3 trillion yen ($257 billion) in debt-servicing costs under the budget, the document showed on Tuesday. That will be up 13.7% from the amount set aside for the current fiscal year, reflecting the ministry's plan to guard against any future rise in long-term interest rates. (Reuters)

USA

 US House Prices Continue Strong Growth. Growth in US house prices remained strong in June, according to a closely watched survey. The Standard & Poor's/Case Shiller index showed that prices were 12.1% higher in June compared with a year earlier. The index measures single-family home prices across 20 cities, and found price rises in all of them. But the pace of growth was slightly below the 12.2% annual growth rate measured for May. (Bloomberg)

 Consumer Confidence Index In U.S. Increases To 81.5. Consumer confidence unexpectedly improved in August as Americans grew more optimistic about employment opportunities and the outlook for the economy. The Conference Board’s index of sentiment advanced to 81.5 from a revised 81 the prior month that was stronger than initially estimated, the New York-based private research group said today. The median forecast in a Bloomberg survey of economists was 79. Another report showed home prices appreciated in June at the second-fastest pace in seven years. (Bloomberg)

Europe

 UK Service Sector Activity And Confidence Rise, CBI Survey Finds. Business activity and confidence in the UK service sector has grown strongly, according to the CBI's latest survey. Business and professional services - which includes legal and accountancy firms - saw a particularly sharp turnaround in business volumes. The survey found that a balance of 15% of companies in consumer services saw business volumes grow, a level that has not been reached since August 2007. Confidence was also high, with a positive reading of 28%. However, fewer firms saw profitability increase than saw it decrease, giving a negative 15% reading - the worst since February last year, with a further fall expected over the next three months. The business and professional services sector saw a positive volume growth reading of 20% - the best since November 2007, with optimism also up. (BBC)

 German Business Confidence Rises To Highest In 16 Months. German business confidence rose to the highest level in 16 months in August, beating forecasts and indicating that the recovery in Europe’s largest economy is gathering pace. A measure of construction activity fell. The Ifo business climate index, based on a survey of 7,000 executives, climbed to 107.5 from 106.2 in July, the Munichbased institute said today. That’s the highest since April 2012. Economists predicted an increase to 107, according to the median of 42 forecasts in a Bloomberg News survey. (Bloomberg)

 Dutch Government Agrees To Another $8 Billion In Budget Cuts. The Dutch government has agreed a further $8 billion in budget measures to honor the European Union's deficit ceiling next year, Finance Minister Jeroen Dijsselbloem told reporters on Tuesday. The latest package has been under discussion for several weeks already, and details of the cuts will be presented on Sept. 17 in the 2014 budget. The Netherlands has already implemented several rounds of spending cuts in an attempt to bring its deficit below 3 % of economic output, inline with EU requirements and to protect its high credit-rating. (Reuters)

Currencies

 Japanese yen, Swiss franc gain on Syria worries. The Japanese yen and Swiss franc gained Tuesday as investors sought safety amid fears of U.S. military action in Syria, which added to existing uncertainty over U.S. Federal Reserve policy. Against the Japanese yen, the dollar dropped to ¥97.09 from late Monday’s level of ¥98.68. The Swiss franc rose to $1.0894 from $1.0842 late Monday. The euro exchanged hands at $1.3390 in recent trade, higher than $1.3369 late Monday in North America. The ICE dollar index, which measures the U.S. currency against six counterparts, fell to 81.137 from 81.385 on Monday. The British pound traded at $1.5543, down from Monday’s $1.5570. The Aussie dollar fell to 89.92 U.S. cents, down from 90.24 U.S. cents late Monday. The dollar hit a fresh all-time high against the Indian rupee on Tuesday, fetching 66.19 rupees from 64.3 rupees late Monday, according to FactSet. The greenback also jumped against the Indonesian rupiah, buying 10,900 rupiah in recent trade from 10,840 late Monday. The Turkish lira also hit a new all-time low Tuesday, with the dollar fetching 2.0308 lira from 1.9964 lira late Monday. (Market Watch)

Commodities

 Brent Hits 6-Month High As West Weighs Strike On Syria. Brent crude leaped to a six-month high on Tuesday, up more than $3 in heavy trading to top $114 a barrel as Western powers considered a military strike against Syria following last week's suspected chemical weapons attack. Brent crude notched its biggest daily %age gain since October, rising by 3.3 % to settle $3.63 higher at $114.36 a barrel. It hit a session high of $114.42. U.S. crude rose rose $3.09 to settle at $109.01 a barrel. Its session high of $109.32 matched its high for the year so far. (Reuters)

 Gold Rises 1 Pct On Safe-Haven Bids, Syria Fears. Gold rose 1 % to its highest price in more than three months on Tuesday, as investors sought safe havens from rising geopolitical tension, with an attack by Western powers on Syria seen imminent. Spot gold rose 0.9 % to $1,417.10 by 2:57 p.m. EDT (1857 GMT), having earlier hit $1,423.41, which marked the highest since May 15. Among other precious metals, spot silver was up 0.9% at $24.50 an ounce, having earlier hit $24.68, which marked the highest since April 15. Platinum dropped 1.1 % to $1,523.24 an ounce as Syria and economic fears weighed down on demand expectations. Platinum reached its highest since April 9 at $1,552.50 in earlier trade on supply disruptions in South Africa. (Reutes)