Malaysia

Malaysia Receives Record FDI Of RM39bil. Malaysia recorded its highest ever foreign direct investment (FDI) of RM38.7bil last year, a 24% increase over 2012 and 3.9% higher than the last record of RM37.3bil achieved in 2011. International Trade and Industry (MITI) minister Datuk Seri Mustapa Mohamed, citing United Nations Conference on Trade and Development data, said the increase compared favourably with increase in global FDI of 11%, 6.2% into developing countries, and 2.4% in South-East Asia. “Investments were mainly in the manufacturing (37.6%), services (28.8%), as well as mining (28.7%) sub-sectors. The major contributors included the financial and insurance sectors, information and communication sub-sectors, which collectively contributed 55% of investments in the services sector for 2013,” Mustapa added. (The Star)

Asia Pacific

Indonesia Holds Key Rate As Narrower Deficit Aids Currency. Indonesia kept its key interest rate unchanged for a third straight meeting as a narrowing current-account deficit and slowing inflation reduced the need for tighter monetary policy. The rupiah rose the most in a month. The central bank held the reference rate at 7.5 %, it said in Jakarta today, a decision predicted by 18 of 19 analysts in a Bloomberg News survey. One expected a 25 basis-point increase. It kept the deposit facility rate at 5.75 %. (Bloomberg)

China & Sri Lanka Seen Concluding Free Trade Pact This Year. China and Sri Lanka could sign a free trade agreement by the end of the year, state news agency Xinhua cited Sri Lanka's foreign minister as saying. Sri Lankan Foreign Minister G.L. Peiris, who is on a four-day visit to China, said "the feasibility study is on the verge of completion". Peiris told Xinhua in an interview on Wednesday it would be the most significant bilateral achievement since the 1952 Rubber-Rice Pact, when rubber and rice was bartered between China and Sri Lanka. (Reuters)

Aussie Jobless Rate Surges To Decade High Last Month. Australia's jobless rate unexpectedly jumped to a decade high last month, intensifying concerns about the future of the manufacturing sector as global carmakers prepare to pull out. The Australian dollar dropped nearly one US cent on speculation interest rates might have to be eased again. Yesterday's data from the Australian Bureau of Statistics showed unemployment rose to 6 % in January, the highest level since July 2003 and well above forecasts of 5.8 %. (Reuters)

USA

Jobless Claims In U.S. Increased To 339,000 Last Week. More Americans than forecast filed applications for unemployment benefits last week, underscoring the uneven progress in the labor market. Jobless claims increased by 8,000 to 339,000 in the week ended Feb. 8 from 331,000 in the prior period, a Labor Department report showed today in Washington. The median forecast of 52 economists surveyed by Bloomberg called for a decrease to 330,000. (Bloomberg)

Retail Sales In U.S. Unexpectedly Fell 0.4% In January. Sales at U.S. retailers declined in January by the most since June 2012 amid bad weather and uneven progress in the labor market, signaling the economy was off to a slow start in 2014. The 0.4 % decrease followed a revised 0.1 % drop in December that was previously reported as an increase, according to Commerce Department figures released today in Washington. The median forecast in a Bloomberg survey of economists called for no change. Jobless claims unexpectedly climbed last week, other data showed. (Bloomberg)

Europe

Greece Jobless Rate Hits New Record Of 28%. The jobless rate in Greece reached a record high of 28% in November, according to newly released government figures. The rate increased from 27.7% in the previous month. For those under the age of 25, unemployment hit 61.4%. Harsh austerity measures have led the Greek economy to shrink by a quarter in four years. However, other economic indicators have suggested that there are signs of recovery. (BBC)

IMF Signs Off On Latest Review Of Portugal's Bailout. The International Monetary Fund's board on Wednesday said Portugal was on track with the conditions of its bailout program, and gave the euro zone country about €910mil (US$1.2bil). Portugal has so far gotten about €25bil of the €26.9bil the Fund pledged over three years to help Lisbon deal with a debt crisis, the IMF said. Portugal plans to exit from its international bailout this June, just as its economy is expected to post the first year of growth since 2010. (Reuters)

Currencies

Dollar Falls Against Rivals After Soft Data. The dollar lost ground against most of its major rivals on Thursday after readings on retail sales and employment came in weaker than expected. The ICE dollar index, which tracks the greenback against six other currencies, declined to 80.308 from 80.718 late Wednesday. Meanwhile, the British pound rose further on Thursday after touching the highest level in three weeks on Wednesday, to $1.6660 from $1.6587 late Wednesday. Likewise, the dollar continued its downward trend against the yen after losses in the previous day, slipping to ¥102.27 from ¥102.44 late Wednesday. The euro also advanced against the dollar, to $1.3677 from $1.3592. The Australian dollar was last at 89.85 U.S. cents from 90.29 U.S. cents late Wednesday. (Market Watch)

Commodities

Oil Edges Lower On Weak U.S. Data, Refinery Maintenance. Brent crude oil futures prices edged lower on Thursday, pressured by a forecast dip in demand during refinery maintenance season and a rise in jobless claims in the United States, the world's largest oil consumer. U.S. crude, also known as West Texas Intermediate (WTI), lost 2 cents to close at $100.35 barrel, having dipped as low as $99.40 a barrel earlier in the session, below the 200-day moving average of $99.51. Brent crude oil futures for March delivery, which expire on Thursday, fell by 6 cents to settle at $108.73 a barrel, after closing up 11 cents in the previous session. The April contract rose 13 cents to $108.48. (Reuters)

Gold Rises Above $1,300 For First Time Since November. Gold rose above $1,300 an ounce on Thursday for the first time in over three months, gaining almost 1 % after disappointing U.S. retail sales data weighed on the dollar and increased bullion's appeal as a currency hedge. Spot gold rose to $1,302.40 an ounce, its highest since Nov. 8. It was last up 0.9 % at $1,301.79 an ounce by 3:33 p.m. EST (2033 GMT). Among other precious metals, silver mirrored gold's gains, rising 1.1 % to $20.45 an ounce. Platinum climbed 0.6 % to $1,409.80 an ounce, while palladium gained 0.7 % to $729.25 an ounce. (Reuters)