Malaysia

 Malaysia Raises Fuel Prices As Najib Seeks To Trim Budget Gap. Malaysia raised fuel prices for the first time since 2010, joining neighboring Indonesia in curbing subsidies that have stretched government budgets and threatened investor confidence. The price of the widely used RON 95 grade of gasoline will rise 20 sen to 2.10 ringgit ($0.64) a liter at midnight, according to an announcement by Prime Minister Najib Razak today in Putrajaya, outside of Kuala Lumpur. Diesel will increase 20 sen to 2 ringgit a liter. The increases will help the government save about 1.1 billion ringgit this year and 3.3 billion ringgit annually in future by reducing state subsidies, he said. (Bloomberg)

 PM: Govt To Go Ahead With MRT, Projects With High Impact On Rakyat. The government will go ahead with high impact projects, especially those with low import value and have a high positive impact on the rakyat, says Datuk Seri Najib Tun Razak. He said on Monday the Mass Rapid Transit would go ahead as planned but the high-speed rail project between Kuala Lumpur and Singapore was still being negotiated. Najib, who is also the Finance Minister, said there was a possibility the government would reschedule some of the big ticket government projects which have a low multiplier effect. He did not name them. "Projects will low import content and high multiplier effect will be given priority," he said. On the fiscal deficit, he said the government's target was 3% of GDP by 2015. (The Star)

Asia

 Indonesia’s Trade Gap Widens To Record As Inflation Quickens. Indonesia unexpectedly reported a record trade deficit while inflation accelerated further, renewing pressure on policy makers as they grapple with a slumping currency. Stocks and the rupiah fell. The trade gap in July was $2.3 billion, the biggest on record, according to the Statistics Bureau, and exceeding all 16 estimates in a Bloomberg survey. Consumer prices rose 8.79 % in August from a year earlier, a separate report showed. The increase was the greatest since January 2009, and compared with the 8.95 % median in a survey. (Bloomberg)

 China Rebound Signaled In Rising Manufacturing Gauges. China’s manufacturing strengthened in August, with one index posting its biggest jump in three years, as improving demand abroad and at home underpins a recovery in the world’s second-largest economy. An official Purchasing Managers’ Index jumped more than estimated to a 16-month high of 51.0, a government report showed yesterday in Beijing. A separate PMI released today by HSBC Holdings Plc and Markit Economics advanced to 50.1 last month from 47.7 in July, the largest gain since 2010. Readings above 50 signal expansion. (Bloomberg)

Europe

 Eurozone August Factory Orders Best Since May 2011. August orders for goods made in the eurozone came in at their fastest rate since May 2011, leaving factories unable to keep up with demand, according to a survey. As a result, manufacturers in the 17-country eurozone had a backlog of orders. The Markit Manufacturing Purchasing Managers' Index (PMI) stood at 51.4 in August, up from 50.3 in July. Any reading of above 50 suggests expansion. (BBC)

 UK Manufacturing 'Booming Again'. UK manufacturing is "booming again", according to a survey, with the sector seeing its strongest growth in activity for two and a half years in August. The latest Markit/CIPS purchasing managers' index (PMI) for the sector jumped to 57.2. A figure above 50 indicates expansion. It marks the fifth consecutive month of expansion and is the highest reading since February 2011. Output and new orders rose at their fastest rate for 19 years. (BBC)

 British Retail Sales Growth Eases Slightly In August. growth in British retail sales eased slightly in August after a bumper July, but demand for furniture helped to sustain the momentum, industry data showed on Tuesday. The British Retail Consortium said the total value of retail sales was 3.6 % higher in August than a year ago, compared with 3.9 % annual growth the previous month, which was the best July since 2006. Like-for-like sales, which strip out changes in floor space as retailers open and close outlets, rose 1.8 % on the year, compared with 2.2 % in July. The survey suggested Britons are feeling more confident about committing to big purchases, citing rising sales of furniture and flooring. (Reuters)

Currencies

 SNB Says It Will Cap Franc As Long As Conditions Warrant. The Swiss National Bank (SNBN)’s ceiling on the franc will stay in place as long as it is needed, according to Vice President Jean-Pierre Danthine. “The cap isn’t there forever -- it is there as long as it corresponds to monetary conditions,” Danthine said late yesterday at a business reception in Lausanne, Switzerland. Danthine’s comment comes after SNB President Thomas Jordan said in a newspaper interview yesterday that there was no reason to give up the ceiling on the Swiss currency. The central bank imposed the cap of 1.20 per euro on the franc in September 2011, citing the need to ward off deflation and a recession. Danthine said that the cap’s strength against the euro in 2011 justified introducing the ceiling. (Bloomberg)

 U.K. Pound Ticks Higher After Upbeat PMI Data. The British pound rose on Monday after upbeat manufacturing data confirmed the U.K. is seeing signs of recovery, while the dollar also moved broadly higher ahead of a rush of data and central-bank policy decisions due this week. The pound rose against most major currencies and exchanged hands at $1.5582, up from $1.5488 late Friday, and reached 1.1787 euros, a 0.6% rise, according to FactSet. The euro was buying $1.3217, up fractionally from its $1.3215 level late Friday. Meanwhile, the ICE dollar index — which tracks the U.S. currency against six rivals — rose to 82.118 from 82.074 late Friday in North America. Among other major units, the Australian dollar advanced to 90.02 U.S. cents from 89.03 U.S. cents. The Japanes yen moved lower, however, with the dollar appreciating to ¥99.24 from ¥98.16 late Friday. Meanwhile, the Indian rupee slipped but remained well above its record lows hit last week. In European trading, the dollar was buying 66.010 rupees, up from 65.705 rupees. (Market Watch)

Commodities

 Oil Ekes Gain, Reversing Early Rout On Easing Syria Risk. Benchmark Brent crude oil prices eked out a small gain on Monday, reversing a deep early slide amid upbeat economic data, North Sea output woes and a new French report on Syria's use of chemical weapons. Brent futures rebounded from a $2 drop early in the day to rise 35 cents or 0.3 % to settle at $114.36 a barrel. The U.S. benchmark fell 83 cents to trade last at $106.82 per barrel at 1pm EST, the end of a thinly traded, holiday-shortened day. It had dropped as low as $104.21. (Reuters)

 Gold Down As Syria Concerns Ease. Gold edged below $1,400 an ounce on Monday as a delay in possible U.S. military action in Syria and improved economic conditions from China and Europe boosted the appetite for riskier assets, reducing its appeal as a safe haven. Spot gold was down 0.3 % at $1,391.51 an ounce by 1543 GMT, after falling to a one-week low of $1,374.10 earlier. Silver disconnected from gold, rising 2.9 % to $24.14 an ounce. Spot platinum rose 0.1 % to $1,517.50 an ounce, while spot palladium fell 0.8 % to $713.50 an ounce. (Reuters)