Asia

Moody’s: Household Debt Level In S-E Asia Still Manageable. The high level of household debt in a number of South-East Asian (SEA) countries poses a risk for private consumption growth and banks’ asset quality, but is ultimately manageable, Moody’s Investors Service said. “While elevated household debt could place refinancing pressure on mortgage and consumer credit as the global credit cycle gradually tightens, SEA bank systems are largely sound and can withstand significant asset deterioration,” said Moody’s vice-president and senior research analyst Rahul Ghosh. Malaysia and Thailand were the most vulnerable to rising rates due to high overall indebtedness and a rapid pace of credit accumulation in recent years, it noted. Moody’s said household debt as a share of gross domestic product (GDP) was high for both, at 87% for Malaysia and 82% for Thailand as of end-2013. (Bernama)

Japan's Export Growth Fails To Narrow Trade Deficit. Japan's trade deficit edged higher in September despite exports rising at their fastest pace in seven months. Exports jumped 6.9% from a year earlier to 6.38tn yen ($60bn; £38bn), while imports rose 6.2% to 7.34tn, leaving a deficit of 958.3bn yen, up 1.6% from September 2013. The weak yen has helped bring down the cost of Japanese goods sold abroad. The finance ministry data showed that exports to Asia were strong, with sales to China up 15% for the month. However, a consequence of the weaker yen has been to raise the cost of importing fuel, raw materials and components, hurting the manufacturing sector in particular. (BBC)

China's Q3 GDP Growth At 7.3%, Industrial Output 8%. China's economy expanded 7.3% year-on-year in July-September, official data showed Tuesday, slumping to a five-year low despite official efforts to shore up growth the world's second largest economy. The third quarter figure announced by the National Bureau of Statistics was lower than expansion of 7.5% in the previous three months, but exceeded the median forecast of 7.2% in an AFP survey of 17 economists. Meanwhile China's industrial production, which measures output at factories, workshops and mines in the world's second largest economy, rose 8% year-on-year in September, the government announced. Retail sales, a key indicator of consumer spending, expanded 11.6% in the same month, the National Bureau of Statistics said, while fixed asset investment, a measure of government spending on infrastructure, rose 16.1% on-year in the first nine months of the year.(AFP)

China Approves $24.5b In Rail And Airport Projects. China has approved construction of five airports and three railway projects worth 150b yuan ($24.5b), the country's top economic planning agency said on Wednesday, the latest move to speed up infrastructure projects to boost growth. China's economy grew at its slowest pace since the global financial crisis in the September quarter, adding to worries that it will drag on global growth. The building of railway lines and airports will foster investment, the biggest driver in the world's second-largest economy, which has sagged this year as a cooling manufacturing sector and a softening housing market discourage spending. (Reuters)

Australia Third Quarter Inflation Cools, Gives RBA Room To Hold Rates At Record Low. Australia's consumer prices cooled in the third quarter with a key gauge of underlying inflation back comfortably in the middle of the Reserve Bank's 2-3% target band, giving the central bank room to hold interest rates low for longer. Official figures released on Wednesday by the Bureau of Statistics showed the RBA's favored "trimmed mean" measure of the consumer price index (CPI) rose 0.4% on the quarter and 2.5% versus the same quarter a year ago. The headline CPI was even lower with the annual rate slowing to 2.3% from 3.0%. (Reuters)

N.Z. Inflation Slows, Gives RBNZ Scope To Prolong Rate Pause. New Zealand inflation in the third quarter slowed more than economists and the central bank forecast, giving Governor Graeme Wheeler scope to keep borrowing costs unchanged for longer. The currency fell. The consumers price index rose 1% in the third quarter from a year earlier, after increasing 1.6% in the previous period, Statistics New Zealand said in Wellington today. That’s less than the 1.3% expected by the Reserve Bank of New Zealand and the 1.2% median forecast. (Bloomberg)

USA

U.S. Inflation Muted In September As Energy Costs Drop. U.S. consumer prices rose marginally in September, painting a weak inflation picture that should give the Federal Reserve ample room to keep interest rates low for a while. The Labor Department said on Wednesday its Consumer Price Index edged up 0.1% last month as a rise in food and shelter costs offset a decline in energy prices. The CPI had dropped 0.2% in August and economists had expected a flat reading in September. In the 12 months through September, the CPI rose 1.7% after a similar gain in August. The Fed targets 2% inflation and tracks an index that is running even lower than the CPI. (Reuters)

U.S. Existing Home Sales At One-Year High, Prices Up. U.S. home resales raced to a one-year high in September, the latest indication the housing market recovery is gradually getting back on track. The National Association of Realtors said existing home sales increased 2.4% to an annual rate of 5.17 million units, the strongest reading since September of last year. That was above economists' expectations for a rise to a 5.10 million unit pace and more than reversed August's decline, which had pushed down sales to a 5.05 million unit pace. Still, sales were 1.7% below those for September of last year. (Reuters)

U.S. Mortgage Applications Rose Last Week: MBA. Applications for U.S. home mortgages rose last week as refinancing picked up following a sharp drop in interest rates, an industry group said on Wednesday. The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, rose 11.6% in the week ending October 17. (Reuters)

US Business Borrowing For Equipment Rises In September: ELFA. U.S. companies' borrowing to spend on capital investment rose in September, the Equipment Leasing and Finance Association (ELFA) said. Companies signed up for $9.4b in new loans, leases and lines of credit last month, up 21% from a year earlier, according to data from ELFA. Borrowing rose 31% from August. "Strong originations and solid portfolio performance, together with a slight uptick in hiring, all point to a robust equipment finance sector as we move into the final quarter of the year," ELFA Chief Executive William Sutton said in a statement. (Reuters)

Europe

UK Consumer Confidence Tumbles In October On Job Insecurity: Survey. Consumer confidence in Britain took its biggest tumble in four years this month as workers in low-paid sectors worry about losing their jobs in an economic slowdown, a survey published on Thursday showed. The Consumer Confidence Index, produced by polling firm YouGov and economic forecasters CEBR, slid by 2.9 points to 111.2 points, its lowest level since January and its biggest monthly fall since October 2010. "While employment levels are up, many jobs are low-paid and unsecure, and it is these workers that are looking ahead to the coming year with some trepidation," Charles Davis, director at the Centre for Economics and Business Research, said. (Reuters)

Currencies

Dollar Climbs To One-Week High Against Rivals. The dollar traded at a one-week high against its rivals Wednesday afternoon after data showed U.S. inflation crept higher in September. Economists had expected no change. The U.S. dollar index traded at 85.7450 Wednesday afternoon, compared to 85.3030 late Tuesday. The dollar hasn’t fallen below ¥105.48 since Sept. 8. It traded at ¥107.14 Wednesday afternoon, compared to ¥106.98 late Tuesday. The euro continued to tumble against the dollar weighed down by the expectation that the European Central Bank could include the purchase of corporate bonds as a part of its stimulus program. The shared currency traded at $1.2642, compared to $1.2713 late Tuesday. (Market Watch)

Commodities

Brent Holds Above $86 As Buyers Slowly Return. Brent crude futures steadied above $86 a barrel on Wednesday, clinging to gains from the previous session as buyers gradually returned to a market hammered to four-year lows by abundant supply. Brent crude for December delivery was up 3 cents at $86.25 at 0329 GMT, pulling further away from last week's low of $82.60, which was its weakest since 2010. December U.S. crude was down 2 cents at $82.47 a barrel. (Reuters)

Gold Drops On Dollar Rise, Easing Physical Demand. Gold dropped on Wednesday, snapping a two-day rise as weak U.S. inflation data and a dollar rise prompted bullion investors to take profits after the previous session's six-week high. Spot gold was down 0.4% at $1,244.79 an ounce by 1:48 p.m. EDT (1748 GMT). Silver was down 1.8% at $17.19 an ounce. Among platinum group metals, platinum dropped 0.8% to $1,265.75 an ounce, while palladium eased 0.1% to $770.80 an ounce. (Reuters)