Malaysia

Highlights Of The New Automotive Policy. The highlights of the New Automotive Policy announced on Monday are to promote a competitive and sustainable domestic automotive industry including the national car corporation. The NAP, announced by International Trade and Industry Minister Datuk Seri Mustapa Mohamed on Monday is also to make Malaysia as regional automotive hub in energy-efficient vehicles. The other thrusts of the NAP are to promote and increase value-added activities in a sustainable manner and promote and increase in the exports of vehicles and automotive components. The NAP would also safeguard consumers’ interest by offering safer and better quality products at competitive prices. According to the media briefing, the NAP will have a car price reduction framework to fulfil the Barisan Nasional promise to gradually reduce car prices by between 20% and 30% over next five years. However, there will be no reduction in any excise duties under the NAP. If the government’s fiscal deficit improves, it may consider gradually reviewing duties. (The Star)

Asia Pacific

Japan To Open Door Further To Foreign Workers For Economic Growth. Japan's government agreed on Monday to make it easier for firms to hire foreign workers for highly-skilled positions and as trainees to offset a declining workforce and accelerate economic growth. The government will also take steps to increase female workers in management positions and strengthen the child care system to increase the number of working women, a top advisory panel said on Monday. Japan has the most rapidly aging society in the world, with a quarter of the population already over 65 years of age. The workforce is also shrinking, which could become a considerable drag on growth. (Reuters)

Japan Revises Down November Factory Output, Shrinks 0.1%. Japan's factory output in November was weaker than first reported with industrial production turning down 0.1%, according to revised data Monday, in the latest sign of slowing growth. The reading – which came after preliminary data had shown a 0.1% rise in output on-month – also marked the first contraction in three months. However, figures last week showed November machinery orders – a key measure of capital spending – jumped 9.3% from October to a five-year high, suggesting a pick-up in corporate investment. (AFP)

China Economic Growth Rate Stabilises At 7.7%. China's economy, the world's second-largest, has shown signs of stabilising, as 2013's growth rate matched that for 2012, official data suggests. Gross domestic product (GDP) grew at an annual rate of 7.7% in the October-to-December period, down from 7.8% in the previous quarter. But it was still higher than the government's target rate of 7.5%. China is trying to maintain strong growth while rebalancing its economy. China has said it wants to move away from an investment-led growth model to one driven by domestic consumption. (BBC)

China’s 2013 New Home Sales Hit $1.1 Trillion, Record High. China’s new home sales last year exceeded $1 trillion for the first time as property prices in cities the government considers first tier surged in the absence of more nationwide property curbs. The value of new homes sold in 2013 rose 27 % from 2012 to 6.8 trillion yuan ($1.1 trillion), National Bureau of Statistics said in a statement today. New-home prices in December climbed 20 % in Guangzhou and Shenzhen from a year earlier, and jumped 18 % in Shanghai and 16 % in Beijing, the bureau of statistics said Jan. 18. (Bloomberg)

China 2013 Property Investment And Sales Quicken. Growth in real estate investment and property sales accelerated in China in 2013, a sign the booming property market has resisted Beijing's sustained efforts to cool it down. Real estate investment, which accounted for 15 % of China's gross domestic product in 2013, rose 19.8 last year from a year earlier, compared with 16.2 % in 2012, the National Bureau of Statistics said on Monday. Property sales rose 17.3 % in terms of floor space, and 26.3 % in terms of value, the agency said in a statement on its website, www.stats.gov.cn. That compared with annual increases of 1.8 % and 10 %, respectively, in 2012. (Reuters)

N.Z. Annual Inflation Accelerates, Boosting Case For Rate Rises. New Zealand’s annual inflation rate accelerated in the fourth quarter, underpinning the Reserve Bank’s case to start raising interest rates this year. Consumer prices rose 1.6 % from the year-earlier quarter, the fastest annual pace since early 2012, Statistics New Zealand said in Wellington today. Prices gained 0.1 % from the third quarter. Economists expected annual inflation of 1.5 % and a quarterly drop of 0.1 %, according to the median of forecasts in a Bloomberg survey. (Bloomberg)

North America

Canadian Consumer Confidence Drops On Employment Outlook. Canadian consumer sentiment dropped for the first time in a month as a surprise decline in employment in Ontario diminished optimism in the nation’s most-populous province. The Bloomberg Nanos Canadian Confidence Index fell to 58.7 from 59.2 the prior week. Ontario’s mood index fell almost 1.5 %age points, leading the national drop after the province lost 39,300 jobs in December. (Bloomberg)

Europe

Irish Bond Markets Cheer Rating Upgrade. Irish government bond yields slid close to eight-year lows on Monday, as investors cheered the country's upgrade from junk by Moody's rating agency late Friday. The yield on Ireland's benchmark 10-year bonds – a measure of the cost to the country of repaying its debt and a key indicator of perceived risk in a country – tightened to 3.271 % on Monday. This is close to lows not seen since 2006, and remains comfortably below that of its peripheral neighbors Spain (where 10-year notes yield 3.659 %) and Italy (where yields are at 3.789 %). Meanwhile, Irish five-year government bond yields fell to 1.628 % – lower even than Sweden's, which were at 1.672 %. This compares to the height of the sovereign debt crisis in 2010, when Ireland's 10-year yield was close to 15 %, a factor that pushed it to ask for an 85 billion euro ($115.2 billion) bailout from the International Monetary Fund and the country's fellow euro zone members to help it pay down its debt. (CNBC)

Currencies

Dollar Up Broadly As Week’s Data Outweigh Jobs Shock. The U.S.dollar gained against most rivals Friday, as a week of data reassured investors that December’s dismal employment report wasn’t indicative of a broader shift in the economy. The ICE dollar index, a measure of the greenback’s strength against six rivals, rose to 81.245 from 80.904 late Thursday. The pound rose to $1.6410 from $1.6359 late Thursday. For the week, it fell 0.4% against the greenback. The euro fell to $1.3528 from $1.3619 late Thursday. The dollar traded at ¥104.26 versus ¥104.29, and was up 0.1% against the yen on the week. In other forex action, the Australian dollar dropped to 87.74 U.S. cents from 88.15 U.S. cents late Thursday. (Market Watch)

Commodities

Oil Dips Below $106/Bbl On China Data, Iran Deal. Brent crude dipped below $106 per barrel on Monday, weighed by data showing China's oil demand growth slowed further in 2013 and by news Iran had started implementing a nuclear deal with world powers, which could eventually allow more oil exports. Brent crude oil for March dropped as low as $105.81 a barrel, before paring losses to last trade at $106.31 a barrel by 3:17 p.m. EST (2017 GMT), down 17 cents on the day. U.S. crude for February delivery was trading 65 cents lower at $93.72 per barrel, after settling up 41 cents at a two-week high on Friday. (Reuters)

Gold Steadies Near 6-Week High, Strike Notice Lifts Platinum. Gold steadied on Monday after touching its highest level in nearly six weeks with a lower dollar and a dip in equities boosting investor confidence in the yellow metal. Spot gold was close to flat at $1,253.19 an ounce at 3:31 p.m. EST (2031 GMT), after hitting its highest level since mid December at $1,259.85 earlier in the day. Spot platinum rose to its highest level since Oct. 31 at $1,469.50 an ounce, before retreating to trade last at $1461.90 an ounce. Palladium was down 0.2 % at $745.40 an ounce. Spot silver was at $20.26 an ounce, close to flat on the day. (Reuters)