Malaysia

Inflation In March Remained At 3.5% YoY, matching market expectations, as multiple cost-push pressures ranging from an increase in the electricity tariff to the implementation of minimum wage and the continued normalization period of a petrol price hike continues to keep overall prices elevated. The core inflation (minus food and beverages) also remained at 3.3%. For the 1Q14, the CPI averaged at 3.4% and on a monthly comparison, the CPI rate rose by 0.1% MoM. (Please refer to Economic Viewpoint for further comments)

Asia

China's Economy Slows To 18-Month Low In Q1. China's economy grew at its slowest pace in 18 months in the first quarter of 2014, official data showed on Wednesday, with signs of waning momentum already prompting limited government action to steady the world's second-largest economy. Authorities have ruled out major stimulus to fight shortterm dips in growth, and some analysts think the economy will continue to lose momentum into the middle of the year. The economy grew 7.4% in the January-March quarter from a year earlier, slightly stronger than the median forecast of 7.3 % in a Reuters poll but still slowing from 7.7% in the final quarter of 2013. It was China's slowest annual growth since the third quarter of 2012, when growth was also 7.4%. (Reuters)

USA

Factories Lead U.S. Economic Rebound As Housing Lags. Gains in manufacturing are helping power the U.S. out of the winter doldrums, while homebuilding shows signs of lagging behind. Factory production climbed 0.5 % in March after a revised 1.4 % surge in February that marked the biggest gain in almost four years, figures from the Federal Reserve showed today in Washington. Housing starts rose 2.8 % to a 946,000 annualized rate last month, falling short of the median forecast of economists surveyed by Bloomberg, according to Commerce Department data. (Bloomberg)

US Housing Starts Climb In March, But Trends Point To Slump. U.S. housing starts rose less than expected in March and building permits fell, pointing to underlying weakness in the housing market that could persist despite better weather. The Commerce Department said on Wednesday groundbreaking increased 2.8 % to a seasonally adjusted annual rate of 946,000. February's starts were revised to show a 1.9 % rise rather than the previously reported 0.2 % fall. Economists polled by Reuters had expected starts to rise to a 973,000-unit rate last month. (Reuters)

Europe

UK Unemployment Hits 5-Year Low; Wage Growth Meets Inflation. U.K. unemployment fell to 2.4 million between December and February to reach 6.9 %, hitting a new five-year low, as pay growth and inflation grew by the same level for the first time in almost four years. The unemployment rate's figure of 6.9 % is significant as it is not just down by 0.3 % from the previous three months to January, but it is also below the 7 % level originally set by Bank of England (BoE) Governor Mark Carney last summer as the point when an interest rate hike would be considered. Carney has since abandoned that target, but the jobless figures remain closely watched. The Office of National Statistics (ONS) also said that for the first time since April 2010 the pay growth rate did not fall behind the inflation rate. Total pay growth rose to 1.7% in the three months to February while consumer prices rose by the same amount. Consumer prices did drop down to 1.6 % year-on-year in March, their lowest point in four years, but the ONS figures on wage growth did not take into account the month of March. However, in the month of February alone, pay growth stood at 1.9 %. (CNBC)

Currencies

Gold Flat As Wall Street Rises, US Industry Data Strong. Gold prices were little changed on Wednesday, as gains were limited by rising Wall Street stocks and strong U.S. industrial production data fed investor caution about bullion a day after prices fell nearly 2 %. Spot gold inched up 42 cents to $1,302.46 an ounce by 3 p.m. EDT (1900 GMT), following Tuesday's 1.8 % drop on heavy technical selling after prices fell below the 200-day moving average. Among other precious metals, silver edged up 0.2 % to $19.61 an ounce, having hit a 2-1/2-month low at $19.24 an ounce in the previous session. Platinum climbed 0.1 % to $1,435.80 an ounce, while palladium rose 1 % to $799.25 an ounce. (Reuters)

Commodities

Brent Oil Rises Close To $110 On Ukraine Tension; U.S. Oil Unmoved. Brent crude rose toward $110 a barrel n Wednesday on mounting tensions in Ukraine, while prices for U.S. oil were nearly unchanged after a report showed a huge build in stockpiles, which canceled out geopolitical concerns. Brent crude for June delivery rose by a dollar earlier in the session but pared gains to settle up 24 cents at $109.60 a barrel, its highest level since March 3. The May ontract expired on Tuesday. U.S. crude for May delivery rose 1 cent to settle at $103.76 a barrel. (Reuters)

Dollar Up Vs. Yen On Industrial-Production Data. The dollar rose against the yen Wednesday after a better-than expected reading on U.S. industrial production in March suggested the economic recovery is strengthening. The dollar rose to ¥102.24 from ¥101.89 late Tuesday. The ICE dollar index , which measures the greenback against six rivals, rose to 79.827 from 79.795 late Tuesday. The Australian dollar rose to 93.71 from 93.57 U.S. cents late Tuesday, boosted by better-than-expected Chinese data. The U.S. unit rose to 1.1014 Canadian dollars from 1.0977 Canadian dollars late Tuesday. The euro was little changed at $1.3815 versus $1.3812 late Tuesday. The British pound rose to $1.6797 from $1.6723 late Tuesday. (Market Watch)