Malaysia

Industrial Production In January Expanded By 3.7% YoY, following a growth of 2.3% on the final month of 2013. Though this is below market and our own expectation for a 4.2% increase, the index has been rebased to the year 2010, from 2005 previously. On a monthly comparison, industrial production fell by 3.6% MoM and based on the seasonally adjusted index, it fell by 2.8% MoM. Based on the 3-month moving average (3mma) however, production gained 1.7% YoY (December: 0.7%). The manufacturing sector expanded at a slower pace of 4.7% in January, compared to the 6.1% gained in December. The 3mma saw a 4.4% YoY growth, from 4.8% previously. On a monthly comparison, it contracted by 4.3% MoM. The fall in monthly production was expected in light of fewer working days in the month of January due to multiple holidays in that month. (Please refer to Economic Viewpoint for further comments)

Asia Pacific

Japan Machinery Orders Jump, Point To Capex Recovery. Japan's core machinery orders rose in January at the fastest pace in almost a year, rebounding from a record decline in the previous month, in a positive sign that long-dormant business investment will start to accelerate and contribute to the broader economy. The 13.4 % month-on-month increase in orders - a leading indicator of capital expenditure - was faster than the median estimate by economists for a 7.0 % rise, and supports the Bank of Japan's argument that business investment will quicken as domestic demand strengthens. (Reuters)

Japan Unions Get $19-A-Month Raises Amid Abe Wage Push. Japanese labor unions said they clinched their biggest raises in years as Prime Minister Shinzo Abe calls for companies to boost wages to help put the world’s third-largest economy on a path to sustainable growth. Based on negotiations across 43 union groups, companies agreed to increase base wages by an average of 1,950 yen ($19) a month in the coming year, the Japanese Trade Union Confederation, known as Rengo, said yesterday in Tokyo. The union group, the nation’s biggest, said the increment was significant enough to rank as the biggest raises won since at least the turn of the century. (Bloomberg)

China Jan/Feb Retail Sales, Industrial Output Miss Targets. China's latest read on domestic spending and industrial output came in worse than expected, offering little comfort to markets already spooked by the prospect of a weakening economy. Combined industrial output for January and February rose 8.6 % on year, official data showed Thursday, worse than a Reuters forecast for a 9.5 % rise. Combined retail sales for the period, meanwhile, were up 11.8 % on year, also missing Reuters expectations for an increase of 13.5 %. (CNBC)

Australia's Economy Adds 47,300 Jobs In February. Australia's economy added 47,300 jobs in February - three times what many analysts had been expecting. The boost follows two months of disappointing jobs growth, leading many to worry about a slowdown in the country's economy. The unemployment rate held steady at 6% as more workers said they were looking for jobs. Australia's economy has been helped by the central bank's decision to keep interest rates low to boost demand. (BBC)

USA

US Jobless Claims Fall To New 3-Month Low, Raising Economy Hopes. The number of Americans filing new claims for unemployment benefits unexpectedly fell to a fresh three-month low last week, suggesting a strengthening in labor market conditions. Initial claims for state unemployment benefits dropped 9,000 to a seasonally adjusted 315,000, the Labor Department said on Thursday. That was the lowest reading since late November. Claims for the week ended March 1 were revised to show 1,000 more applications received than previously reported. (Reuters)

Retail Sales In U.S. Increase For First Time In 3 Months. Sales at U.S. retailers rose in February for the first time in three months, claims for jobless benefits dropped last week and consumer confidence improved, pointing to an economy regaining traction after a harsh winter slowed demand even more than previously estimated. The 0.3 % advance in purchases followed a 0.6 % drop in January that was larger than initially reported, the Commerce Department in Washington said. Unemployment claims unexpectedly fell to a more than three-month low and consumer sentiment rose to the second-highest level since August. (Bloomberg)

Business Inventories Climb 0.4 In January, Matching Estimates. U.S. business inventories rose in January, but a drop in sales meant it was now taking the longest time since late 2009 to move goods from shelves. The Commerce Department said on Thursday inventories rose 0.4 % after increasing 0.5 % in December. Economists polled by Reuters had forecast inventories increasing 0.4 % in January. Businesses accumulated a massive amount of stock in the second half of the year, some of which ended up piling up in warehouses. As a result, they are expected to order fewer goods, which economists say will undercut first-quarter growth. Business sales fell 0.9 % in January, the largest drop since March last year. (Reuters)

Europe

Irish Economy Posts Shock 2.3 Pct Decline In Fourth Quarter. Ireland's economy contracted by a shock 2.3 % in the fourth quarter from the previous three months as imports surged and consumer spending fell, denting a recovery that had been gaining traction since the completion of an EU/IMF bailout last year. Gross domestic product (GDP) contracted by 0.3 % for 2013 as a whole, following a year of scant growth in 2012, although growth in the third quarter of the year was revised up to 2.1 % to paint a volatile picture. Economists polled by Reuters had expected growth of 0.4 % in the fourth quarter from the previous quarter and full-year growth of 0.3 %. They see the economy growing by 2.1 % next year, similar to the government's forecast. (Reuters)

Currencies

Euro Falls On Draghi Comments; Aussie Rises. The euro fell against the U.S. dollar Thursday after European Central Bank President Mario Draghi noted once again how the high exchange rate has weighed on inflation and said the bank would ease further in the case of “material” risks to its inflation expectations. The euro swung to a loss against the dollar, buying $1.3859 from $1.3904 late Wednesday. The ICE dollar index , which tracks the U.S. unit against six rivals, was at 79.612 from late Wednesday’s level of 79.614. The British pound was at $1.6624 versus $1.6619. The Australian dollar rose to 90.23 U.S. cents from 89.87 U.S. cents, extending gains after Australia posted monthly jobs growth that outstripped expectations. The dollar against the Japanese yen fell to ¥102.62 from ¥102.76. (Market Watch)

Commodities

Brent Crude Down On Weak China Data; U.S. Oil Rebounds. Brent crude oil futures fell on Thursday as weaker-thanexpected Chinese economic data offset worries over potential supply disruptions that could be prompted by the stand-off between Russia and Western powers over Ukraine. U.S. crude rose 21 cents to settle at $98.20 a barrel. Brent crude fell 63 cents to settle at $107.39 a barrel. (Reuters)

Gold Rises To Six-Month High On China Worries, Ukraine. Gold rose to a six-month high on Thursday as fears of economic slowdown in China and lingering worries about Russia's standoff with Ukraine over Crimea dampened demand for riskier assets and boosted bullion's appeal. Spot gold was up 0.4 % at $1,371.74 an ounce by 2:39 p.m. EDT (1839 GMT). Among other precious metals, silver was down 0.4 % at $21.15 an ounce, while platinum climbed 0.5 % to $1,473.24 an ounce and palladium gained 0.5 % to $773.47 an ounce. (Reuters)