Malaysia

Consumer Confidence In M’sia Below Global Average. Consumer confidence in the country has taken a hit as Malaysians continue to worry about the economic outlook, food prices and job security this year, according to a Nielsen survey. Malaysia saw the region’s largest decline in confidence between the fourth quarter of 2013 and the first three months of 2014, declining six index points to 92. This is two points below the global average of 94 points, says the latest Nielsen Global Survey on Consumer Confidence and Spending Intentions. In contrast, Indonesia’s confidence index score remained the highest globally at 124 points in Q1 2014, while the Philippines scored 116, followed by Thailand at 108, Singapore and Vietnam at 99 points each. (The Star)

Asia

Bank Of Japan Blames Export Concerns For Cut To Growth Forecast. The Bank of Japan has cut its growth forecast for the current fiscal year by more than a fifth, citing “structural” weakness in exports and fears that the April 1 consumption tax rise will drag on demand. According to the BoJ’s new projections, presented hours after the central bank kept its basic monetary policy settings on hold for the 14th meeting in a row, real gross domestic product will grow by 1.1 % in the fiscal year to March 2015. In its last interim forecast in January, the BoJ said it was expecting growth of 1.4 %, down a notch from its October estimate of 1.5 %. (Financial Times)

BOJ Projects Inflation Exceeding 2 %, Keeps Bullish View Intact. The Bank of Japan projected for the first time on Wednesday that inflation will exceed 2 % roughly two years from now, underscoring its conviction that a sustained end to deflation is on the horizon without additional stimulus. Governor Haruhiko Kuroda maintained his optimism on the outlook, saying that he saw no delay in the timing for meeting the bank's inflation target. Kuroda noted that the economic impact of a sales tax increase this month appeared limited so far. But he quickly added the BOJ is ready to expand stimulus further if risks threaten achievement of the price target. (Reuters)

Japan’s Consumption Hangover Begins As Car Sales Decline. Vehicle deliveries last month in Asia’s second largest auto market fell to the lowest since December 2012 after Japan raised its consumption tax for the first time 17 years, according to industry figures released yesterday. In the run-up to the levy being increased 3 percentage points to 8 % on April 1, sales had surged for seven straight months. (Bloomberg)

Japan Factory Output Rises 0.3% In March. Japan's industrial output in March rose 0.3% month-on-month, recovering from a 2.3% fall in February, government data showed Wednesday. Economists had widely predicted a 0.5% rise, after the February contraction which was the first decrease in output in three months. Japan raised its sales tax in April to 8% from 5%, prompting a flurry of buying in March before the tax came into effect. (AFP)

S. Korea's Industrial Output Up 0.9% In March. South Korea's industrial output rose slightly in March, following two straight monthly declines, on the back of strong memory chip and car exports, government data showed Wednesday. Production in the mining, manufacturing, gas and electricity industries was up 0.9% from February, and 2.7% from March 2013, Statistics Korea said. "Aside from construction, most sectors performed better than the previous month," a senior Statistics Korea official said. (AFP)

China April Manufacturing Data Add To Signs Of Weakness. China’s manufacturing grew less than analysts estimated in April, highlighting weakness in the economy from exports to construction that could force extra government measures to support growth. The Purchasing Managers’ Index was at 50.4, the National Bureau of Statistics and China Federation of Logistics and Purchasing said today in Beijing, less than the 50.5 median estimate of 38 analysts in a Bloomberg News survey. March’s reading was 50.3, with numbers above 50 signaling expansion. (Bloomberg)

USA

US Economic Growth Slows Sharply To 0.1% In First Quarter. US economic growth slowed sharply in the first quarter of the year, growing at an annual rate of 0.1%. The rate is the slowest for a year and a large fall on the 2.6% increase in gross domestic product (GDP) in the final quarter of last year. An unusually cold and disruptive winter, coupled with tumbling exports, contributed to the decline, the US Commerce Department said. But it said economic activity already appeared to be bouncing back. Business investment fell by 2.1%, with spending on equipment plunging by 5.5% at an annual rate compared with a year earlier. But consumer spending - which drives 70% of growth in the US economy - grew by 3%, although the increase was dominated by a 4.4% rise in spending on services, reflecting higher utility bills during the bitterly cold winter. (BBC)

Manufacturing Picks Up As U.S. Consumers Spend. Manufacturing picked up in April after consumer spending surged the prior month, showing the U.S. economy is poised to lift off in the second quarter. The Institute for Supply Management’s factory index rose to 54.9, the strongest so far this year, from 53.7 in March, figures from the Tempe, Arizona, group showed today. Readings above 50 indicate expansion. Household purchases climbed in March by the most since August 2009, according to Commerce Department data. (Bloomberg)

US Federal Reserve Continues To Slow Monthly Bond-Buying. The US Federal Reserve has announced a further reduction of its economic stimulus efforts, after a two-day meeting in Washington. The central bank said it would continue trimming its monthly bond-purchases by an additional $10bn to $45bn. The bank has been buying bonds to keep long-term interest rates low and stimulate economic activity. Fed chair Janet Yellen said the bank will continue to support the US economy for as long as it deems necessary. (BBC)

US Private Sector Created 220,000 In April. The ADP National Employment Report showed private employers added 220,000 jobs to their payrolls in April after increasing headcount by 209,000 in March. Economists in a consensus survey expected ADP's national employment index to show the economy created 200,000 private sector jobs in April, up from March's 191,430 reading. (Reuters)

Consumer Spending In U.S. Jumps By Most In Five Years. Consumer spending surged in March by the most in almost five years as warmer weather brought shoppers back to auto-dealer lots and malls, a sign the U.S. economy gained momentum heading into the second quarter. Household purchases, which account for about 70 % of the economy, climbed 0.9 %, the most since August 2009, after a 0.5 % gain in February that was larger than previously estimated, Commerce Department figures showed today in Washington. The median forecast of 77 economists in a Bloomberg survey called for a 0.6 % gain. Incomes increased by the most in seven months. (Bloomberg)

Jobless Claims In U.S. Unexpectedly Climb To Nine-Week High. Applications for U.S. unemployment benefits unexpectedly climbed to a nine-week high, underscoring the difficulty adjusting the data for seasonal variations such as the Easter holiday and spring recess at schools. Jobless claims rose by 14,000 to 344,000 in the period ended April 26, the highest level since Feb. 22, Labor Department data showed today in Washington. The median forecast in a Bloomberg survey of economists called for 320,000. (Bloomberg)

Europe

U.K. Manufacturing Grows More Than Forecast On Exports. U.K. manufacturing grew more than economists forecast in April as output surged to an eight-month high and exports increased. A Purchasing Managers’ Index advanced to 57.3 from 55.8 in March, Markit Economics said in a statement in London today. The median estimate of 32 economists in a Bloomberg News survey was for a reading of 55.4. A level above 50 indicates expansion. (Bloomberg)

Spain's Economy Grows At Fastest Rate Since 2008. Spain's economy grew at its fastest quarterly pace since 2008 during the first three months of the year, according to the country's National Statistics Institute. Gross domestic product (GDP) rose by 0.4% in the January to March period, the data showed. Compared with a year earlier, Spain's economy grew by 0.6%, the fastest pace in three years. But retail sales dropped by 0.5% in March, the biggest fall since December. (BBC)

IMF Approves $17bn Ukraine Bailout Package. The International Monetary Fund (IMF) has approved a $17.1bn bailout for Ukraine to help the country's beleaguered economy. The loan comes amid heightened military and political tension between Ukraine and neighbouring Russia. The loan is dependent on strict economic reforms, including raising taxes and energy prices. The money will be released over two years, with the first instalment of $3.2bn available immediately. (BBC)

Currencies

Dollar Falls Against Pound; Jobs Report In Focus. The dollar fell against the British pound Thursday as investors remained more optimistic about the U.K. economic recovery, with attention shifting to the U.S. jobs report for April due Friday. The pound rose to $1.6890 from $1.6871 late Wednesday. The ICE dollar index , which pits the greenback against six rivals, was at 79.524 versus 79.522 late Wednesday. The dollar rose to ¥102.30 from ¥102.22 late Wednesday. The euro was little-changed from $1.3866 late Wednesday and the Australian dollar inched down to 92.73 U.S. cents from 92.89 U.S. cents. (Market Watch)

Commodities

Oil Slips As China, Higher Supply Weigh. Brent oil was pressured on Thursday by lacklustre Chinese economic data and expectations for a rebound in Libyan oil exports, while U.S. crude also fell in the wake of the previous day's news that stockpiles reached multi-decade highs. Brent crude was down 75 cents at $107.32 a barrel by 12:13 a.m. EDT (1613 GMT). U.S. crude fell 25 cents to $99.49 a barrel, after rising a few pennies just before noon. (Reuters)

Gold Falls For Second Day On ETF Outflows After Fed. Gold fell on Thursday on fresh outflows from gold exchange-traded funds, extending losses from the previous day when the Federal Reserve reinforced its view in the U.S. economy's prospects and reduced its monthly bond purchases, as expected. Spot gold was down 0.9 % at $1,279.24 an ounce at 2:31 p.m. EDT (1831 GMT), having touched a one-week low of $1,277.09. Among other precious metals, silver was down 0.5 % at $19.01 an ounce. Platinum was down 0.1 % at $1,420.13 an ounce, while palladium was the only gainer in the precious metals complex, rising 0.4 % to $810.50 an ounce. (Reuters)