Malaysia

Sept Vehicle Sales Rise To 54,945 Units. Sales of passenger and commercial vehicles in September increased to 54,945 units from 45,925 units recorded in the same period last year, said the Malaysian Automotive Association (MAA). It said the passenger vehicle segment recorded higher sales of 48,411 units, during the month in review, compared with 40,235 units recorded in the corresponding month last year. Sales of commercial vehicles rose to 6,534 units in September from 5,690 units registered in the corresponding period in 2012. When compared with August, the sales volume of both passenger and commercial vehicles in September was 8% higher at 3,839 units. It said the increase was due to market conditions returning to normalcy and launches of new models. (Bernama)

Asia

China's Economic Growth Picks Up Speed In Third Quarter. China's economic growth picked up pace in the July-to-September period, the first rise in three quarters. The world's second-biggest economy grew 7.8% from a year earlier, up from 7.5% expansion in the previous quarter. After years of blistering growth, China has seen its pace of expansion slow recently and there have been fears that growth may slow further. China has set a growth target of 7.5% for the year. Factory output rose 10.2% in September, from a year earlier. Meanwhile, retail sales rose 13.3% and fixed asset investment jumped 20.2% during the month from levels a year ago. (BBC)

Japan: Manufacturers’ Mood Up. Confidence among Japanese manufacturers remained steady in October from the previous month, a Reuters monthly poll showed on, a sign the feel good mood generated by Prime Minister Shinzo Abe’s reflationary policies is persisting. But the service sector’s mood fell for a second straight month in October, underlining the view that private spending, which has led a recovery in the world’s third-largest economy this year, is losing some momentum. The mood of both manufacturers and non-manufacturers is expected to improve over the next three months, with optimism far outweighing pessimism in both sectors, the poll showed. A total of 278 businesses responded to the poll of 400 big and mid-size firms taken Sept 30 to Oct 11. (Reuters)

North America

Canada And European Union Agree Free-Trade Deal. Canada and the European Union have struck a free trade agreement aimed at boosting growth and employment. The deal will lower tariffs, streamline regulation, and cut red tape. Canadian Prime Minister Stephen Harper and European Commission President Jose Manuel Barroso agreed the deal at a meeting in Brussels on Friday. Mr Barroso said they had reached a "breakthrough in negotiations" to achieve "a great agreement for both the European Union and Canada". The deal still requires approval by parliaments and EU member states. (BBC)

Europe

Draghi Says Bank-Aid Rules Must Be Flexible On Forced Losses. European Central Bank President Mario Draghi said banks should be able to access public aid without wiping out junior bondholders if regulators decide a lender needs more capital and isn’t on the brink of failure. Draghi urged the European Union to make clear when it will allow exceptions to state-aid rules that require private sector creditors to take losses before government backstops can step in. He said public capital needs to be available -- without wiping out subordinated debt holders -- if a bank’s holdings are above regulatory minimums and also below what supervisors deem necessary in a particular case. (Bloomberg)

Bank Of England Says Rate Rise Unlikely In 2014. The Bank of England's chief economist, Spencer Dale, says economic conditions are unlikely to improve enough to merit a rise in interest rates next year. In a question and answer session on the social network Twitter, he said the UK would need to see sustained growth before rates rose from the 0.5% level. Earlier this week he said that rates could rise in 2014 if conditions were strong enough. (BBC)

Currencies

BNM, Bank Of Korea In Currency Swap Arrangement. Bank Negara Malaysia and the Bank of Korea yesterday jointly announced the establishment of a bilateral local currency swap arrangement. It is designed to promote the use of local currencies for bilateral trade and to strengthen financial cooperation between Malaysia and South Korea, the central bank said. This arrangement allows for the exchange of local currencies between the two central banks of up to five trillion won (RM15 billion). The effective period of the arrangement is three years, and could be extended by a mutual agreement between the central banks. (Bernama)

Euro Trims Gains After Testing $1.37. The euro gave back gains Friday after briefly topping the $1.37 level for the first time since February, unable to maintain the rally on fears the shared currency’s strength will prove unwelcome to European policy makers. The ICE dollar index, which measures the U.S. currency against a basket of six major rivals, was virtually unchanged 79.649 in recent action. The dollar traded at ¥97.84 Japanese Yen in recent action, little changed from ¥97.88 late Thursday. The British pound edged higher to $1.6168 versus $1.6160. The Australian dollar advanced to 96.67 U.S. cents versus 96.26 on Thursday. (Market Watch)

Commodities

Oil Rises On Weak Dollar, Chinese Growth Data. Oil prices settled moderately higher on Friday as China reported that its economy grew in the third quarter at its quickest pace this year, and as the U.S. dollar weakened. On Friday, Brent crude settled 83 cents higher at $109.94 a barrel. U.S. crude oil gained 14 cents and settled at $100.81 a barrel. (Reuters)

Gold Drops On Profit Taking, Posts Biggest Weekly Gain In 2 Months. Gold fell on Friday as investors took profits after the previous session's 3 % rally on expectations the partial U.S. government shutdown will lead the Federal Reserve to postpone tapering of its bond-buying stimulus. Spot gold fell 0.4 % to $1,313.68 an ounce by 1:41 p.m. EDT (1741 GMT). Among other precious metals, silver edged up 0.1 % to $21.87 an ounce. Platinum was up 0.1 % at $1,431.10 an ounce and palladium slipped 0.1 % to $737.72 an ounce. (Reuters)