Malaysia

Industrial Production In September Saw An Annual Growth Of 5.4% YoY, following a 6.5% rise in August. This is a tad below market polls of 5.5%. The 3-month moving average (3mma), which helps smoothen out seasonal distortions, saw production increasing by 4.1%, a slower pace than the 4.6% previously. On a monthly comparison, production rose 0.9% MoM (August: 2.0%) whilst the seasonally adjusted month-on-month growth saw a 0.2% fall. For the whole of the 3Q14, industrial production growth averaged at 4.1% YoY compared to 5.9% in 2Q14. Year-to-date production growth averaged at 4.9%, compared to 3.6% in the same period on 2013. (Please refer to Economic Viewpoint for further comments)

M'sia Construction Sector Grew 10.7% To RM25.3b In Q3. The construction sector in Malaysia grew 10.7% to RM25.3b in the third quarter this year compared to the same quarter in 2013, and 0.5% compared to the preceding quarter, according to the Department of Statistics Malaysia. The non-residential sub-sector had the highest portion of the work with 34.5% (RM8.724b). Selangor led the other states, recording the highest value of construction work done at RM6.21b or 24.6%.The private sector continued to dominate with a 70% share, with the Government and public corporations each taking up 15%. (The Star)

Asia

FDI To ASEAN In 2013 On Par With China. Asean attracted foreign direct investment (FDI) inflows exceeding US$122b in 2013 and about on par with that of China. It was also an increase from the US$114b in 2012, according to the Asean Investment Report 2013-2014 launched jointly by Asean and the United Nations Conference on Trade and Development (UNCTAD) at the 4th Asean Investment Forum (AIF) here yesterday. Growing corporate income and cash reserves of Asean companies further supported strong intra-regional investment, it said. The report showed that RVCs in Asean now involve more companies, - contributed by the rising FDI - more Asean countries, and a wider range of products and industries in the region. (Bernama)

Japan’s Current Account Surplus Widens In Sept. Japan posted a current account surplus for the third consecutive month in September as a weaker yen helped boost repatriated returns on foreign investment. Japan logged a surplus of 963.0b yen in the current account, up 61.9% from a year earlier, the finance ministry said. It was bigger than a market median forecast of 532b yen. The current account is the broadest measure of the country’s trade with the rest of the world, measuring not only trade in goods but also services, tourism and returns on foreign investment. (AFP)

Japan Sentiment Tumbles, Bolstering Calls For Sales Tax Hike Delay. Sentiment among Japanese households and service sector companies tumbled in October as a sales tax hike in April and worries about another tax increase next year prompted consumers to slash spending. The service sector sentiment index fell to 44.0 in October from 47.4 in September, a Cabinet Office survey showed on Tuesday, which was the lowest level in two years. The survey focuses on workers such as taxi drivers and restaurant staff - called "economy watchers" for their proximity to consumer and retail trends. Those surveyed also turned more pessimist about the outlook two to three months from now. The Cabinet Office downgraded its assessment of services sector sentiment for the first time since April. Consumer confidence also deteriorated for a third straight month in October to 38.9 in October, down from 39.9 in September. It was the lowest reading since April. (Reuters)

USA

U.S. Small Business Confidence Gains In October: NFIB. U.S. small business optimism rose in October as more owners said they planned to invest in their companies and were having a harder time filling job openings, according to a survey released on Tuesday. The National Federation of Independent Business said its Small Business Optimism Index gained 0.8 point to 96.1. Twenty-six% of business owners said they planned capital outlays, which are investments in things like machinery and land. That was the second highest reading since early 2008, and a hopeful sign for the business spending outlook. Also boosting the index, 24% of owners reported job openings they could not fill, up 3%age points from September. (Reuters)

Europe

British Retail Sales Stage Modest Recovery In October: BRC. British retail spending recovered modestly last month after falling sharply in September, helped by consumers splashing out on big-ticket items like furniture, an industry survey showed on Tuesday. The British Retail Consortium said October total retail spending was 1.4% higher than a year ago, compared with a 0.8% fall in September, the steepest annual drop since April 2012. On a like-for-like basis -- a measure that strips out changes in floor space and is preferred by equity analysts -- retail sales were flat, after a 2.1% fall in September. (Reuters)

Russia GDP Growth Seen At Slowest Since 2009 As Oil Adds To Pain. Russia’s third-quarter economic growth was the slowest since a 2009 contraction as the slumping price of crude oil and the ruble’s plunge added to the effect of sanctions over Ukraine, a survey of economists showed. Gross domestic product grew 0.3% from a year earlier after expanding 0.8% in the previous three months, according to the median estimate of 20 economists in a Bloomberg survey. The statistics office in Moscow will release the data tomorrow or Nov. 14. (Bloomberg)

Russian Trade Surplus Narrows As Falling Oil Cuts Exports. Russia’s trade surplus narrowed in September to the lowest in seven months as falling oil prices cut export revenue during President Vladimir Putin’s escalating standoff with the U.S. and the European Union over Ukraine. The surplus fell 20% from a year earlier to $13b, the central bank in Moscow said today on its website. The median estimate of 14 economists surveyed by Bloomberg was $15.7b. Imports decreased 10% to $25.8b and exports fell 13% to $38.8b. (Bloomberg)

Currencies

Dollar Hits Seven-Year High Against Yen, Retreats. The dollar hit a seven-year high against the yen before retreating somewhat, on a relatively subdued Veterans Day trading session. After breaking above the 116-yen level in morning trade — the highest point for the dollar/yen trade since Oct. 17, 2007 — the dollar drifted lower. It last traded at ¥115.37 Tuesday afternoon, compared to ¥114.94 Monday. The euro traded at $1.2480 Tuesday afternoon, compared to ¥1.2425 late Monday. The ICE U.S. Dollar Index, a measure of the dollar’s strength against a basket of six currencies, was down 0.35% at 87.4990. The kiwi rose as high as 78.43 cents after the report, before retreating back to 78.03 cents. It traded at 77.52 cents late Monday. The pound continued to inch higher against the dollar in Tuesday’s session, trading at $1.5920, compared to $1.5845 Monday, ahead of the U.K.’s quarterly inflation report, due at 5:30 a.m. Eastern. (Market Watch)

Commodities

Brent At Four-Year Low In Continued Hunt For Bottom. Benchmark Brent crude closed down on Tuesday after setting a four-year low and coming close to testing the psychologically important $80 a barrel support, as traders continued to seek a bottom to a selloff that began in June. Brent closed down 67 cents, or 0.8%, at $81.67 a barrel, after touching a Sept. 2010 low of $80.46. It is down 25% from a June high above $107. WTI settled up 54 cents, or 0.7%, at $77.94 a barrel, after a session low at $76.42. That spread between the two was less than $4 a barrel, the smallest since Oct. 22. (Reuters)

Gold Up 2% As Dollar Drops, Physical Demand Rises. Gold rose around 2% on Tuesday as the dollar fell and the previous session's two-percent slide triggered physical buying interest among Asian investors, though prices remain under pressure from all-time highs in the U.S. equity markets. Spot gold was up 1.7% at $1,169.95 an ounce by 2:41 p.m. EST (1941 GMT). Among other metals, silver climbed 1.6% to $15.82 an ounce. Platinum was up 1% at $1,203.75 an ounce, while palladium gained 1.5% to $769.72 an ounce. (Reuters)