Malaysia

Current Oil Prices Favourable To Malaysia's Economy, Says Zeti. The current level of oil price is favourable to the country's economy as it brings down the costs to businesses and consumers as well as less inflationary, Bank Negara Governor Tan Sri Zeti Akhtar Aziz said. She said consumers would have more funds for discretionary expenditure and increase consumption demand on other things that spur growth. "Therefore, we and the region are able to remain on a sustainable growth path," she said. However, Zeti said if the oil price dropped to a certain threshold level, government revenue and development expenditure were going to be affected. (Bernama)

Asia

Japan Downgraded By Moody's Amid Rising Fears Over Debt. Moody's has cut Japan's credit rating by one notch over rising doubts about its ability to reduce debt levels. Tom Byrne, regional credit officer of Moody's, said the downgrade was closely linked to Mr Abe's decision to delay a sales tax rise due to be implemented in 2015. The move would make it more difficult for Japan to cut its budget deficit by 2020. Moody's also warned that efforts by the Bank of Japan to achieve its 2% inflation target through aggressive money printing, or quantitative easing, could make it more expensive for the government to borrow. Japan's rating has been reduced by one notch to A1 from Aa3 after the economy sank into recession during the third quarter. The A1 rating is one level lower than China and South Korea, and four lower than the US and Germany, which both have the top Aaa rating. (BBC)

Japan November Final Manufacturing Growth Eases, Still Suggests Modest Fourth-Quarter Rebound: PMI. Growth in Japanese manufacturing activity eased in November and output expanded at a slightly slower pace than initially reported, a survey showed on Monday, suggesting a modest recovery after the economy unexpectedly slipped into recession. The final Markit/JMMA Japan Manufacturing Purchasing Managers Index (PMI) was 52.0 in November, less than a preliminary reading of 52.1 and lower than a final 52.4 in October. The output component of the PMI index was 52.7, less than a preliminary reading of 53.5 but still higher than 51.3 in October. (Reuters)

China Factory Gauge Drops As Shutdowns Add To Slowdown: Economy. A Chinese manufacturing gauge fell as factory shutdowns aggravated a pullback in the economy, raising pressure on the central bank to ease policy further after it lowered interest rates for the first time in two years. The government’s Purchasing Managers’ Index fell to an eightmonth low of 50.3 in November, compared with the 50.5 median estimate of analysts in a Bloomberg survey and October’s 50.8. Readings above 50 indicate expansion. (Bloomberg)

Indian November Factory Growth Fastest In Nearly Two Years. Indian factory activity expanded at its fastest pace in nearly two years in November as burgeoning order books led manufacturers to accelerate output, a business survey showed on Monday. The HSBC Manufacturing Purchasing Managers' Index (PMI), compiled by Markit, rose to 53.3 in November from 51.6 in October, its highest since February 2013, and the thirteenth consecutive month of expansion in activity. A Reuters poll had expected manufacturing activity to lose some steam and predicted the index would fall to 51.2. New orders were supported by strong domestic demand for consumer goods while foreign orders remained robust. The sub-index soared to a 21-month high of 56.2 from October's 53.0. (Reuters)

India's October Infrastructure Output Growth Accelerates To 6.3% Year/Year: Government. India's annual infrastructure output growth accelerated to 6.3% in October, driven by pick up in coal and electricity generation, government data showed on Monday, indicating an improvement in economic activity. Output expanded 1.9% year-onyear in September. The infrastructure sector, which comprises coal, crude oil, oil refining, natural gas, steel, cement, electricity and fertilisers, accounts for 37.9% of India's industrial output. (Reuters)

Thai November Inflation Eases To Five-Year Low, Rates Seen On Hold. Thai headline inflation fell to a five-year low in November as oil prices weakened, but analysts say interest rates are not likely to be cut soon with the country under martial law. Thailand's annual headline inflation in November dropped to 1.26%, slightly less than the forecast 1.30% in a Reuters poll, government data showed on Monday. The core inflation rate, which strips out fresh food and energy prices, eased to 1.60% in November from 1.67% in October. (Reuters)

USA

U.S. Manufacturing Cools, But Underlying Momentum Remains. U.S. factory activity moderated in November, but sustained gains in new orders and a rebound in exports suggested the economy remained on a firmer footing despite slowing global growth. The Institute for Supply Management (ISM) said on Monday its index of national factory activity fell to 58.7 last month as the pace of restocking slowed. The index had touched a 3-1/2-year high of 59 in October. A reading above 50 indicates expansion in the nation's manufacturing sector. The ISM survey showed new orders increased to their highest level since August, while export order growth also accelerated. (Reuters)

Europe

Euro Zone Factory Growth Stalls In November As New Orders Sink: PMI. Euro zone manufacturing growth stalled in November and new orders fell at the fastest pace in 19 months despite heavy price cutting, painting a bleak picture for the coming months, a survey showed on Monday. Markit's final November manufacturing Purchasing Managers' Index was 50.1, its lowest reading since June 2013 and down from an earlier flash reading of 50.4 and from 50.6 in October. That is barely above the 50 mark that separates growth from contraction, and in a sign that there is little prospect of improvement in December a sub-index covering new orders stayed below the break-even line for a third month, coming in at a 19-month low of 48.7. (Reuters)

U.K. Factory Growth Accelerates To Fastest In Four Months. U.K. manufacturing growth unexpectedly accelerated in November to the fastest pace in four months as domestic demand strengthened. Markit Economics said its Purchasing Managers’ Index rose to 53.5 from a revised 53.3 in October. A reading above 50 indicates expansion. Economists forecast a reading of 53, according to the median estimate in a Bloomberg News survey. (Bloomberg)

Russia Manufacturing Gauge Tops Forecasts As Ruble Drives Output. Russian manufacturers reported improving conditions for a fifth month in November, exceeding forecasts by economists as a weaker currency spurred output and pushed input-price growth to the fastest in more than 16 years. The Russia Manufacturing Purchasing Managers’ Index rose to 51.7, the highest in more than a year, from 50.3 in October, HSBC Holdings Plc said in a statement, citing data compiled by Markit Economics. That exceeded all estimates in a Bloomberg survey of six economists, whose forecasts ranged from 49.9 to 50.2. Readings above 50 indicate expansion. (Reuters)

Currencies

Ruble Bounces Back Off Record Lows. The ruble moved off record lows, but remained weaker against the U.S. dollar Monday, as oil prices recovered slightly. In recent trade, the ruble was worth 1.95 cents. It traded at 2 cents Friday. Elsewhere, the dollar traded lower against the yen as investors largely ignored a downgrade of Japanese sovereign debt by Moody’s Investors Service. The dollar traded at 118.39 yen, compared to 118.61 Friday. The pound was worth $1.5733, compared to $1.5644 Friday. The ICE U.S. Dollar Index, a measure of the dollar’s value against a basket of six rivals, was down 0.39% to 88.0000, snapping a two-day winning streak. (Market Watch)

Commodities

Oil Jumps As Much As 5 Pct From 5-Year Low; Focus On Shale. Crude oil markets jumped as much as 5% on Monday, rebounding from five-year lows with their biggest daily gain since 2012, on fears that the high U.S. shale output blamed for the global oil glut may be shrinking. Benchmark Brent crude oil settled up $2.39 at $72.54 a barrel, after a session peak at $72.73. It fell as much as $2.62 earlier to $67.53, a low since July 2009. The 3% gain on the day was Brent's largest since October 2012. U.S. crude finished up $2.85 at $69 a barrel, after initially plumbing a five-year bottom at $63.72. The 4% rise was the largest one-day move up in U.S. crude since August 2012. U.S. crude continued to surge post-settlement, gaining almost 5% to $69.34 by 2015 GMT. (Reuters)

Gold Rebounds 4 Pct To 1-Month High On Heels Of Oil Prices. Gold saw its biggest daily surge in more than a year on Monday, reversing from 2% losses to a one-month high on spillover support from the surging oil market, technical buy signals and potential for increased Indian imports. Silver vaulted nearly 9%. Spot gold was up 4.2% at $1,216.34 at 12:29 p.m. EST (1729 GMT), its biggest daily surge since September 2013. Silver rallied on the coattails of gold, rising 6.9% at $16.47 an ounce, having earlier rallied as much as 8.8% to a peak of $16.76. Platinum gained 3.4% to $1,237.25 an ounce, while palladium turned down 0.4% to $803.50 an ounce. (Reuters)