Asia

S. Korea Exports Remain Strong In Jan. South Korea's exports got off to a good start in January as signs of economic recovery in the EU and Southeast Asia offset the risks from a weak yen, the trade ministry said Saturday. Exports for the month averaged $2.07 billion a day, up 8.9 % from a year earlier. For the whole of January, however, exports came to $45.584 billion, down 0.2 % from 2013 as there were two less working days in the month compared with the previous year due to the Lunar New Year holiday that began Thursday. Imports in January came to $44.849 billion, down 0.9 % on-year, mainly due to smaller crude oil imports, leaving a $735 million trade surplus, up from $400 million a year earlier. (AFP)

China Manufacturing Gauge Falls To Six-Month Low. A Chinese manufacturing gauge fell to a six-month low in January as output and orders slowed, adding to signs that government efforts to rein in excessive credit will cool growth in the world’s second-largest economy. The Purchasing Managers’ Index was at 50.5, the National Bureau of Statistics and China Federation of Logistics and Purchasing said Feb. 1 in Beijing. That matched the median estimate of analysts surveyed by Bloomberg News and compared with December’s 51 reading. Numbers above 50 signal expansion. (Bloomberg)

India Manufacturing PMI Rises To Highest Since March 2013. Indian factories started 2014 on a high note, with activity growing at its fastest pace in nearly a year as domestic and overseas orders increased, according to a survey that also showed inflation accelerated. The HSBC Manufacturing Purchasing Managers' Index (PMI) , compiled by Markit, bounced to 51.4 in January, its highest since March, from 50.7 in the previous month. The index, which gauges business activity in Indian factories but not utilities, spent three months below the 50 mark that separates growth from contraction before rising above it in November. (Reuters)

Indonesia's Dec Trade Surplus Biggest In 2 Years. Indonesia posted its third straight monthly trade surplus in December and its biggest in two years, an encouraging sign that could give the central bank leeway to keep rates steady next week despite investor anxiety over strains in emerging markets. The trade surplus in December totalled US$1.52 billion, the largest since December 2011, the statistics bureau said on Monday. That followed a revised US$790 million surplus in November and was more than double the median estimate of a US$550 million surplus in a Reuters poll of economists. Indonesia's trade deficit widened to US$4.06 billion in 2013 from US$1.63 billion in 2012, on robust demand for imported fuel, cars and other consumer goods. The deficit in 2012 was the country's first in the modern era. (Reuters)

USA

U.S. ISM Factory Index Declines More Than Forecast. Factories expanded in January at the weakest pace in eight months as colder-than-usual winter weather slowed demand and production, bringing a halt to recent momentum in U.S. manufacturing. The Institute for Supply Management’s factory index decreased to 51.3, lower than the most pessimistic forecast in a Bloomberg survey of economists, from 56.5 the prior month, the Tempe, Arizona-based group’s report showed today. Readings greater than 50 indicate growth, and the median estimate was 56. (Bloomberg)

US Consumers Spend More In December, But Income Barely Rises. U.S. consumer spending rose more than expected in December, but weak income growth suggested the economy could cool off a bit in the first quarter. The Commerce Department said on Friday that consumer spending increased 0.4 % after rising by a revised 0.6 % in November. Spending was previously reported to have increased 0.5 % in November. Economists polled by Reuters had forecast consumer spending, which accounts for more than two-thirds of U.S. economic activity, rising 0.2 % in December. However, income was unchanged last month after rising 0.2 % in November, possibly reflecting the impact of the end of jobless benefits for about 1.3 million long-term unemployed last month. Income at the disposal of households after adjusting for inflation fell 0.2 %. That move could take some steam from consumer spending in the first quarter. (Reuters)

US Consumer Sentiment Dips In January. U.S. consumer sentiment dipped slightly in January, with recent economic improvement not translating to expectations for future gains, a survey released on Friday showed. The final reading on the Thomson Reuters/University of Michigan's overall index of consumer sentiment slipped to 81.2 in January, down from the 82.5 posted in December but up from the preliminary January reading of 80.4. Analysts were looking for a reading of 81.0 in the month. While upper income households reported improved confidence, households with incomes less than $75,000 reported a decrease. (Reuters)

Janet Yellen Sworn In As Us Federal Reserve Chair. Janet Yellen has been sworn in as chair of the Federal Reserve, the US central bank, replacing Ben Bernanke in the role. She is the first woman to hold the post at the Washington-based bank. A respected economist, her main task will be managing the winding down of the bank's bond-buying stimulus programme without damaging her country's recovering economy. Ms Yellen, 67, had been Mr Bernanke's deputy for three years. (BBC)

Jack Lew: US Could Default On Debt By 'End Of Month'. US Treasury Secretary Jack Lew has warned the US may default on its debt by the end of the month if Congress does not raise its borrowing limit. Mr Lew said he could rely on emergency measures to pay US debts after the limit is reinstated on 7 February. But he anticipated the treasury's reserves would quickly be exhausted as it issues annual income tax refunds. Congress suspended the debt limit in October as part of a deal to reopen the federal government after a shutdown. The $16.7tn cap will be reinstated on Friday. (BBC)

Europe

U.K. Manufacturing Grows In January As Expansion Cools. U.K. manufacturing expanded at a slower pace in January as domestic demand and rising export orders underpinned growth for a 10th month. The Purchasing Managers’ Index declined to 56.7 last month from 57.2 in December, above the 50 level that indicates growth, Markit Economics said in a report in London today. That’s less than the 57.3 forecast by economists. The pound extended declines against the euro and the dollar. (Bloomberg)

Eurozone Manufacturing Grows Strongly In January. Eurozone manufacturing grew strongly in January on the back of new orders, a closely-watched business survey suggests, with Germany leading the way. Markit's Eurozone Manufacturing Purchasing Managers' Index (PMI) rose to 54 in January, its strongest month since May 2011 - a figure above 50 indicates growth. This compares to December's figure of 52.7 and reflects the overall pickup in eurozone economic activity. But France failed to break the 50 mark. (BBC)

Currencies

Dollar Drops To More Than 2-Month Low Vs. Yen. The dollar dropped to its lowest level against the yen in more than two months on Monday after data showed a sharp slowing in the pace of U.S. manufacturing-sector expansion. The dollar declined to ¥100.92 from ¥102.04 late Friday. The dollar rose to 2.2844 Turkish lira from 2.2624 lira late Friday, while the greenback gained to 11.2662 South African rand from 11.2078 rand. The dollar rose to 62.925 Indian rupees from 62.50 rupees late Friday, according to FactSet. The ICE dollar index, a gauge of the greenback’s strength, declined to 81.032 from 81.247 late Friday. The euro rose to $1.3529 from $1.3489 late Friday. The British pound dropped to $1.6304 from $1.6443. The Australian dollar traded at 87.51 U.S. cents versus 87.49 U.S. cents late Friday. (Market Watch)

Commodities

U.S. Oil Falls $1, Manufacturing Data Weighs. U.s. Oil futures fell more than $1 on monday, pressured by weak u.s. Factory data and a sinking stock market, while brent crude's decline was limited by rising heating oil prices as a snowstorm swept across the U.S. Northeast. U.S. Oil fell $1.09 to settle at $96.43 a barrel, falling below the 10-day moving of $96.85 for the first time since jan. 15. Brent fell 36 cents to settle at $106.04 a barrel, after sinking during the session to a near three-month low of $105.40. (Reuters)

Gold Rises 1.1 Pct After Weak U.S., China Data. Gold rose more than 1% on Monday after disappointing manufacturing data from the United States and China pummelled Wall Street, while jitters about emerging markets bolstered an investor flight to safety. Spot gold was up 1.1 % at $1,256.71 an ounce at 3:24 p.m. EST (2024 GMT), after having jumped to a high of $1,266.10. Among other precious metals, silver rose 1 % to $19.30 an ounce, while palladium eased 0.3 % to $698.75 an ounce. Platinum was up 0.3 % at $1,379 an ounce, with wage talks between South Africa's AMCU union and the top three platinum producers set to continue this week. (Reuters)