Malaysia

 BNM: GDP to expand between the range of 4.5% to 5.5%. On the basis of economic recovery on a global scale and continued strength from domestic demand, Bank Negara Malaysia (BNM) is forecasting the GDP of the Malaysian economy to grow between the range of 4.5% and 5.5%. This is however, of a wider range than the Ministry of Finance’s and our own forecast of 5.0% to 5.5%. This seems to be largely due to the fact that BNM is taking into further consideration the uncertainties pertaining to the economic situation in the developed economies rather than the downside risks of a moderating domestic demand. (Please refer to Economic Viewpoint for further comments)

 Base Rate To Replace BLR From Jan 2: Bank Negara. Bank Negara Malaysia will replace the Base Lending Rate with the Base Rate from Jan 2, 2015 as the main reference rate for new retail floating rates. The central bank said on Wednesday the new reference rate framework would provide a more transparent reference rate so consumers could make better decisions when choosing the many loan products offered by financial institutions. “The new reference rate will also better reflect changes in cost arising from monetary policy and market funding conditions, while encouraging greater discipline and efficiency among financial institutions in the pricing of retail financing products,” it said. (The Star)

Asia Pacific

 Hot Money Returns As Se Asia’s Foreign Inflows Accelerate. The tide of hot money is turning in favor of Thailand, Indonesia and the Philippines. Overseas investors have bought a net $1.6 billion of shares in the three Southeast Asian countries in March, poised for the biggest monthly inflow since January 2013. That follows $4.2 billion of withdrawals in the fourth quarter, which matched the largest outflow since Bloomberg began tracking the data in 1999. (Bloomberg)

 Japan Exports Tepid, Business Mood Steady Before Sales Tax Hike. Japan's annual export growth in February was well below market expectations, but business confidence remained steady over the month – although that may not last too long. The Ministry of Finance (MoF) data showed that exports rose 9.8% in February from a year earlier, following a 9.5% annual gain in the previous month, as shipments to China and Asia recovered from a Lunar New Year slowdown. The modest rise in exports compared with a 12.4% gain expected by economists in a Reuters poll, with US-bound shipments slowing sharply, possibly due to a cold wave there. In terms of volume, exports increased 5.4% in February. However, the monthly Reuters survey, which closely correlates with the Bank of Japan's tankan, showed both sectors' sentiment indexes are expected to slide to plus 12 and plus 14 respectively in June. (Reuters)

 N.Z. Growth Exceeds 3% As Wheeler Set To Keep Raising Rates. New Zealand’s annual economic growth exceeded 3% for a second straight quarter, buoyed by dairy exports, adding to signs of increasing inflation pressure that may require higher borrowing costs. Gross domestic product increased 3.1 % in the fourth quarter from a year earlier, Statistics New Zealand said in Wellington today. That’s slower than the revised 3.3 % pace in the third quarter and matches the median forecast of 11 economists in a Bloomberg survey. GDP rose 0.9 % from the third quarter, when it increased a revised 1.2%. (Bloomberg)

USA

 US Federal Reserve Hints At Interest Rate Rise In 2015. The US Federal Reserve Chair Janet Yellen has hinted that interest rates in the US could start to rise in early 2015. Ms Yellen said the Fed could begin raising rates six months after it halts its monthly bond-buying programme. She made the remarks after the Fed said it will scale back bond purchases by a further $10bn per month. This is the third time in a row that the central bank has tightened its stimulus efforts. The latest reduction brings the Fed's monthly bond-buying down to $55bn from $85bn last year. However in its latest policy decision, the Fed said it would look at multiple factors before approving any rise in interest rates. It had previously hinted at doing so once the jobless rate fell to 6.5%. (BBC)

Europe

 UK Unemployment Falls By 63,000 To 2.33 Million. The number of people out of work in the UK fell by 63,000 to 2.33 million in the three months to January 2014, according to official figures. The unemployment rate now stands at 7.2% of the population, the Office for National Statistics (ONS) said. The number of people in employment rose to a record 30.19 million, helped by a rise in the number of self-employed. Average earnings also increased, with pay in the three months to January up 1.4% from a year earlier. The number of employees in work fell by 60,000, but 211,000 more people were recorded as self-employed. (BBC)

 Osborne Raises U.K. GDP Forecast In Budget Aiding Savers. Chancellor of the Exchequer George Osborne said the U.K. economy will grow more than previously forecast and announced help for savers and pensioners as he set out his penultimate budget before the 2015 election. The estimate of 2.7 % growth for this year made by the Office for Budget Responsibility, Osborne’s fiscal watchdog, is an increase from the 2.4 % the OBR predicted in December. Growth is predicted at 2.3 % next year. Osborne also announced lower forecasts for borrowing. (Bloomberg)

Currencies

 Dollar Jumps After Yellen Talks Rate Hikes. The dollar spiked against the euro and yen Wednesday after Federal Reserve Chairwoman Janet Yellen said the lag time between the end of the Fed’s bond-buying program and the first rate hike could be about six months, suggesting a first step in monetary tightening could happen as soon as the spring of 2015. The dollar jumped to ¥102.47 from ¥101.41 late Tuesday. The euro dropped to $1.3830 from Tuesday’s level of $1.3932. The ICE dollar index, a gauge of the currency’s strength, rose to 80.001 from 79.389 on Tuesday. The pound fell to $1.6536 from $1.6589 on Tuesday. Meanwhile, the Australian dollar fell to 90.40 U.S. cents from 91.28 U.S. cents late in the previous session. (Market Watch)

Commodities

 Brent Oil Falls As Russian Supply Worries Ease. Brent oil futures fell on Wednesday as worries over sanctions affecting Russian oil supplies eased, while U.S. crude oil rose on an inventory draw at the benchmark's pricing hub and ahead of the front month contract's expiration. Brent settled 94 cents lower at $105.85 per barrel after falling by $1.08 to an intra-day low of $105.71 per barrel, the lowest since Feb. 5. U.S. crude for April delivery rose 67 cents to settle at $100.37 per barrel. U.S. crude for May delivery, which will become the front-month contract on Friday, rose 29 cents to settle at $99.17 per barrel. (Reuters)

 Gold Falls 2 Pct As Dollar Jumps After Fed Statement. Gold fell about 2 % on Wednesday, its biggest one-day drop in three months, as the dollar rallied after the Federal Reserve dropped a set of guideposts it had been using to help the public anticipate when it would finally start bumping borrowing costs up from zero. Spot gold fell 2 % to $1,328.96 an ounce by 4:39 p.m. EDT (2039 GMT), its biggest one-day fall since Dec. 19. Among other precious metals, silver was down 0.9 % to $20.59 an ounce. Platinum fell 0.7 % to $1,441 an ounce, while palladium dropped 0.5 % to $760.75 an ounce. (Reuters)