Asia

Japan Inflation Slows, Threatening Economic Policy Agenda. Japan's annual core consumer inflation eased in August in another sign that the Bank of Japan could eventually be forced to take additional easing steps to meet its 2% price goal sometime next fiscal year. Core consumer prices, which include oil products but exclude fresh food, rose 3.1% in August from a year earlier, less than the median estimate for a 3.2% annual gain and following a 3.3% annual rise in July. The BOJ estimates that the sales tax rise, which was implemented in April, added 1.7%age point to Japan's annual consumer inflation in April and 2.0 points from May onwards. Excluding the sales tax hike, annual core inflation slowed to 1.1% in August from 1.3% in July. (Reuters)

China Industrial Profits Fall In August In Latest Weak Data. China's industrial profits fell 0.6% in August from a year earlier, reversing from July's 13.5% annual rise, the government said on Saturday, the latest in a series of weak data from the world's second-largest economy. Industrial companies made profits of 3.83 trillion yuan between January and August, 10% higher than the same period last year. China's National Bureau of Statistics did not give a reason for the August decline. The monthly decline adds to recent weak figures that have fueled fears that China is at risk of a sharp slowdown if it does not make fresh stimulus measures. (Reuters)

China Official PMI Seen Steady At 51.2 In September But Pressures Remain. Growth in China's manufacturing sector probably steadied in September as factory orders held up, a Reuters poll showed, providing some welcome relief for those who worry the Chinese economy is quickly losing steam. The official manufacturing Purchasing Managers' Index (PMI) likely edged up slightly to 51.2 in September compared with August's 51.1, leaving it comfortably above the 50-point level demarcating an expansion from a contraction on a monthly basis. (Reuters)

China Lets Foreign Institutions Invest More In Its Markets In Third Quarter. China boosted the quotas it gives foreign institutions to invest in domestic securities by the largest amount in the third quarter since the final quarter of 2012 and regulators may also raise the limit on a parallel yuan-denominated program. China accelerated quotas awarded under the Qualified Foreign Institutional Investor (QFII) program as the quarter progressed, adding $2.5b in September, according to State Administration of Foreign Exchange (SAFE) data released on Friday. The total outstanding quota is now $62.2b. Regulators gave the largest award of the month to the Hong Kong Monetary Authority, adding $1b to take its quota to $2.5b. (Reuters)

India Regains 'Stable' Outlook From S&P On Modi Reform Agenda. India regained its "stable" rating from Standard and Poor's on Friday, more than two years after an embarrassing downgrade, in a validation of Prime Minister Narendra Modi's ambitious agenda of economic and fiscal reforms. S&P had cut India's "BBB-minus" rating to "negative" in April 2012, leaving it on the verge of a "junk" rating. That came to symbolize plummeting investor confidence because of corruption cases and a perception of the political paralysis of the then Congress-led government. (Reuters)

Vietnam Third-Quarter GDP Growth Rises On Foreign Investment. Vietnam’s economic growth accelerated in the third quarter as rising foreign investment boosted manufacturing and exports, helping counter slower lending by banks. Gross domestic product rose 6.19% in the third quarter from a year earlier, quickening from a revised 5.42% gain reported in the previous three months, according to data released by the General Statistics Office in Hanoi today. In the nine months through September, the economy grew 5.62%, compared with a median estimate of 5.4% in a Bloomberg survey. (Bloomberg)

Thailand Sees Zero Growth In Exports. Thailand’s central bank said the country’s exports won’t expand at all this year, but maintained the economy can still grow 1.5%. The Bank of Thailand yesterday also cut its economic growth forecast for next year to 4.8% from the 5.5% it predicted in June. Three months ago, it projected a three% increase in exports this year, but now it says there will be zero rise. The central bank’s fresh economic projections came ahead of the August export data due on Monday and is expected to confirm the key economic engine still isn’t firing. (Reuters)

Indonesia 2nd Last In Wealth Report. Indonesia ranked next to last — 52nd out of 53 countries surveyed — in Allianz’s Global Wealth Report 2014 that studied a country’s net financial assets per capita. According to the report based on measurements of a country’s financial wealth, Indonesia has an average net financial assets per capita of €609 (RM2,500), lower than China’s US$7,482 (RM25,574), India (US$949), Thailand (US$1,695) and Malaysia (US$9,941). The insurer’s report said the gross financial assets of Indonesia’s households as a precentage of gross domestic product (GDP) increased by 16% to €244b last year. Indonesia also had among the most unequal wealth distributions in Asia, with the top 10% of the population controlling more than 65% of net financial assets, the report said. (NST)

USA

Consumer Sentiment In U.S. Rose In September To 14-Month High. Consumer confidence climbed in September to a 14-month high as Americans’ outlooks for the economy improved. The Thomson Reuters/University of Michigan final index of sentiment increased to 84.6, the same as the preliminary reading, from 82.5 in August. The median projection in a Bloomberg survey of economists called for 84.8. (Bloomberg)

US Economic Growth Revised Upwards Again. The US economy grew at an annual rate of 4.6% between April and June, faster than the previous estimate of 4.2%, according to revised figures from the US Department of Commerce. The revision was due to larger rises in exports and business investment. Growth estimates are revised as more information about economic performance becomes available. The strong growth - the fastest since the end of 2011 - follows a 2.1% contraction in the first quarter. This fall in economic output was blamed on harsh winter weather, which discouraged shoppers and hampered manufacturing. (BBC)

Europe

EU And Canada Set Out Trade Agreement. The European Commission and Canada have unveiled the details of a new trade liberalisation agreement. Under the deal almost all customs tariffs will be eliminated and markets for services will be opened up. But the agreement still needs approval from the EU parliament and faces particular opposition from Germany. Critics say the deal restricts the power of democratic governments in relation to big business. The European Commission has said the deal would boost bilateral trade by 23%. And a A joint EU-Canadian study has put the combined annual economic gains at about 20bn euros although those figures were published six years ago. (BBC)

German Economy Minister: 2014 GDP Growth Could Be Less Than Forecast. Germany could grow less in 2014 than the 1.8% forecast by the government early this year, Economy Minister Sigmar Gabriel said in an interview published on Sunday, although he added the country was still in good shape compared to euro zone peers. Gabriel told Deutschlandfunk radio in an interview that the Russia/Ukraine crisis had hit the investment climate in Germany, affecting not only firms that had direct business with Russia but also the wider business mood. "We could see growth this year lower than our forecast of 1.8%... but we still have very strong growth momentum and the labor market is robust," he said. (Reuters)

Currencies

Dollar Index Registers 11th Straight Weekly Gain. The U.S. Dollar Index finished higher Friday, notching its 11thconsecutive weekly gain, extending its longest winning streak since the currency became free-floating in 1973. The U.S. Dollar Index reached 85.6490 Friday afternoon, compared to 85.1950 late Thursday. The dollar at 109.29 yen Friday, just below a six-year record against the yen. The euro hit a fresh 22-month low against the dollar, trading at $1.2677 Friday afternoon, down from $1.2759 Thursday evening. The ruble traded at 2.55 cents Friday, compared to 2.6 cents Thursday evening. (Market Watch)

Commodities

Brent Steady, U.S. Crude Up On Supportive Economic Data. Brent crude futures ended flat on Friday as improving supply and concerns about tepid demand for oil in Europe and China offset concerns about the Middle East conflicts, while U.S. crude rose on supportive economic data from the United States. Brent for November delivery settled unchanged at $97 a barrel, having swung from $96.46 to $97.50. U.S. November crude rose $1.01 to settle at $93.54 a barrel. (Reuters)

Gold Falls As Dollar Soars; Posts 4th Weekly Loss. Gold fell on Friday as a dollar-driven rally encouraged by U.S. economic growth dimmed bullion's investment appeal, sending the metal's prices toward a key support level at $1,200 an ounce. Spot gold was down 0.6% at $1,214.67 an ounce by 2:07 p.m. EDT (1807 GMT). Among other precious metals, silver rose 0.3% to $17.51 an ounce. Platinum fell 0.8% to $1,295 an ounce, having earlier hit its lowest since June 2013 at $1,293.70. Palladium was down 2.8% at $777.25 an ounce, having fallen to its lowest since late April at $774.60.(Reuters)