Malaysia

Lower House Passed GST Bill. The Dewan Rakyat today passed the Goods and Services Tax (GST) Bill 2014 after MPs spent two days debating the controversial tax in the House. The Bill also went through the committee stage reading with no amendments, ensuring that the consumption tax starts at a flat rate of 6% beginning April 1 next year. With the bill passed through the lower house, it is set to be read and passed through the upper house, the Dewan Negara, before finally being gazetted and implemented next year. A total of 118 parliamentarians voted in favour of the bill, while 81 voted against it. The tax is expected to help Prime Minister Datuk Seri Najib Razak’s administration rein in spending and tackle the government’s chronic budget deficit. (The Malay Mail Online/FreeMalaysiatoday)

Asia

Asia Developing Economies To Grow At Slower Pace On China. Developing East Asian economies will grow slower than forecast this year as China’s expansion moderates and political upheaval weighs on Thailand’s outlook, the World Bank said. China will expand 7.6 % this year, down from 7.7 % projected in October, while Thailand will grow 3 %, 1.5 percentage points lower than seen six months ago, the World Bank said in its East Asia and Pacific Economic Update released today. Developing East Asia is forecast to grow 7.1 % in 2014, down from 7.2 % seen in October, it showed. Even so, the region’s expansion will be underpinned by a recovery in high-income economies and the market’s modest response to the Federal Reserve’s tapering of its quantitative easing program to date, the report showed. It said “structural reforms” are key to reducing vulnerabilities and enhancing the sustainability of long-term growth in the region. (Bloomberg)

Japan And Australia In Trade Pact To Lower Tariffs. Japan and Australia reached broad agreement on bilateral trade after seven years of wrangling, in a pact that will lower or eliminate tariffs on everything from cars to canned tomatoes. The terms of the agreement will see tariffs on frozen Australian beef eventually cut to 19.5 % from 38.5 % and those on Japanese cars, household appliances and electronics abolished, according to a statement from Prime Minister Tony Abbott’s office issued after he met with counterpart Shinzo Abe in Tokyo. Two-way trade between the nations in the 12 months to June 30 reached A$69.2 billion ($64.1 billion). (Bloomberg)

USA

Consumer Credit In U.S. Rose More Than Forecast In February. Consumer borrowing in the U.S. rose more than forecast in February, reflecting the biggest gain in automobile, school and other non-revolving loans in a year. The $16.5 billion advance in credit exceeded all estimates in a Bloomberg survey of economists and followed a revised $13.8 billion gain in the previous month, Federal Reserve figures showed today in Washington. The median forecast in the Bloomberg survey called for a $14 billion increase. (Bloomberg)

Europe

Manufacturing Helps German Industry Output In February. German industrial output rose slightly more than forecast in February, driven by higher production of intermediate goods and suggesting Europe's biggest economy could be on track for a strong first quarter. Data from the Economy Ministry on Monday showed industrial production climbed by 0.4%, helped by a 0.5 % increase in manufacturing - the part of the economy which powers Germany's success in exporting goods around the world. Despite drops in energy and construction, industrial output growth was one tenth of a point above the consensus forecast in a Reuters poll of 40 economists. (Reuters)

Currencies

Dollar Drifts Lower; Traders Watch Fed, ECB. The U.S. dollar drifted lower in quiet trade Monday, losing ground as investors await minutes from the Federal Reserve’s last meeting later this week. European Central Bank officials offered mixed signals on prospects for more aggressive monetary policy action, including quantitative easing, in the face of persistently low inflation. The euro rebounded from a nearly six-week low set at the end of last week, changing hands at $1.3742 versus $1.3701. The ICE dollar index, which tracks the U.S. unit against a basket of six major rivals, fell to 80.218 from 80.432 in North American trade late Friday. The dollar lost some ground versus the Japanese currency, slipping to 103.22 yen versus ¥103.25. The British pound rose to $1.6607 from $1.6579 late Friday. The Australian dollar fell to 92.61 U.S. cents versus 92.87 U.S. cents on Friday. (Market Watch)

Commodities

Brent Slips Below $106 As Libya Deal Eases Supply Worries. Brent crude prices fell below $106 a barrel on Monday, snapping a two-day winning streak, as worries about supply disruption eased after Libyan rebels occupying four eastern oil ports agreed to gradually end their eight-month old blockade. Brent crude dropped 77 cents to $105.95 a barrel by 0425 GMT, after ending the week 1.3 % lower. U.S. oil declined 26 cents to $100.88, after posting its first weekly loss in three. (Reuters)

Gold Dips On Weak Investor Interest After Payrolls Rally. Gold fell in quiet trade on Monday, weighed down by lack of investment interest after Friday's short-covering rally by bullion investors who had feared U.S. job gains would sharply exceed Wall Street's expectations. Spot gold was down 0.4 % to $1,297 an ounce by 2:36 p.m. In other precious metals trading, platinum fell 1.3 % to $1,424.25 an ounce, and silver was down 0.1 % to $19.87 an ounce. Palladium was down 2.7 % at $765.20 an ounce, as Monday's sell-off forced some speculators to close out their bullish bets after the metal's recent rally, traders said. (Reuters)