Malaysia

· Industrial Production In November Gained An Annual Growth Of 4.7% YoY, a slower pace to October’s revised 5.2% (5.0% pre-revision). This is in line with market polls but higher than our 3.4% estimate. Compared to the previous month, industrial production fell by 2.5% MoM (October: 3.6%) but the seasonally adjusted index still remained a positive 1.5%. Year-to-date saw production growth averaging at 4.9% YoY, stronger than 2013’s 3.3%. The manufacturing sector managed a 3.7% YoY growth in November, surpassing October’s revised 3.2% (3.0% pre-revision). (Please refer to Economic Viewpoint for further comments)

Asia Pacific

· China's Inflation Rate Rises To 1.5% In December. China's inflation rate remained near a five-year low in December, edging up to 1.5% from 1.4% the month before. Sharp rises in the price of some food items were behind the increase, including a 14% rise in egg prices. Consumer price inflation (CPI) for the whole of 2014 was 2% compared with 2013, well below the government's target of 3.5%. Analysts suggested the data pointed to persistent weakness in the world's second largest economy. The producer price index (PPI), which includes wholesale and factory price inflation, fell by a greater than expected 3.3% in December from a year earlier marking the 34th consecutive monthly fall since September 2012. Analysts had expected PPI to fall by 3.1% in December. (BBC)

· Strong Property Sales Boost Slowing Economies. Australian home sales hitting a record high and stronger-thanseasonal property transactions in China are just the shot in the arm that these slowing economies need. Figures from the Australian Bureau of Statistics showed approvals jumped 7.5% in November to confound forecasts of a 3.5% fall, said Reuters, adding that the gain was all the more significant as it followed an 11.5% increase in October. Meanwhile, 60% of China’s major cities recorded a rise in sales volume in December, said Reuters, quoting housing data researcher CRIC. First-tier cities in China rose the most, up more than 15% from November and over 45% from a year earlier. “The housing boost in Australia that is expected to offset a slowdown in mining activities, will be sorely needed as growth slowed to 2.7% in the year to September, and short of the 3% to 3.25% pace Australia has come to consider “normal,” (Reuters)

Americas

· U.S. Payrolls Rise Solidly, But Weak Wages Dim Limelight. U.S. job growth increased briskly in December, but wages posted their biggest decline in at least eight years in a sign the tightening labor market has yet to give much of a boost to workers. Nonfarm payrolls increased by 252,000 last month after an upwardly revised jump of 353,000 in November, the Labor Department said on Friday. The jobless rate fell 0.2 percentage point to a 6-1/2-year low of 5.6 percent, but that was mainly because people left the labor force. The drop in labor participation and a surprise five-cent, or 0.2 percent, decrease in average hourly earnings, which nearly erased November's gains, took some shine off the otherwise upbeat report. (Reuters)

· U.S. Wholesale Inventories Rise, Boost Fourth-Quarter Growth Estimates. U.S. wholesale inventories recorded their largest increase in seven months in November and October's stocks were revised higher, leading economists to sharply raise their fourth-quarter growth estimates. The Commerce Department said on Friday wholesale inventories rose 0.8%, despite an energy price-related decline in the value of petroleum stocks. October's wholesale stocks were revised up to show a 0.6% gain. Inventories are a key component of gross domestic product changes. The component that goes into the calculation of GDP - wholesale stocks excluding autos - rose 0.8%. (Reuters)

· Canada Loses Jobs For Second Month In A Row, Housing Cools. Canada's job market continued to gently cool off in December, shedding 4,300 positions after a loss of 10,700 jobs in November, while the hot housing market showed signs of decline. Statistics Canada said on Friday that the unemployment rate had remained unchanged at 6.6%. Market analysts had expected an increase of 15,000 jobs. The two months of fairly small declines followed big gains in September and October. Full-time employment in December grew by 53,500 jobs, while part-time work dropped by 57,700. (Reuters)

· Brazil Narrowly Meets 2014 Inflation Target. Brazil's government just met its 2014 inflation target, welcome news for policymakers expected to keep raising interest rates to regain investors' confidence and maintain prices under control. The inflation rate as measured by the benchmark IPCA index ended 2014 at 6.41%, government statistics agency IBGE said on Friday. That was in line with analysts' forecasts. Brazil targets annual inflation of 4.5%, with a tolerance margin of 2%age points. (Reuters)

Europe

· German Exports And Production Fall In November. German exports and production fell in November compared with the previous month. Exports fell 2.1% compared with October, German's Federal Statistical Office reported, while imports rose 1.5%. Meanwhile, factory production fell by 0.1% from October as energy production fell and construction activity decreased. On a seasonally adjusted basis, the country's trade surplus shrank to €17.7bn (£13.9bn) in November. Germany exported goods worth around €95.8bn and imported goods valued at €78.0bn in the month. In December, Germany's economic affairs ministry said the country's recovery was "progressing at a slow pace." (BBC)

Currencies

· Dollar Falls Friday, But Still Manages A Weekly Gain. The ICE U.S. Dollar Index moved lower Friday as a contraction in hourly wage growth in December caused investors to delay their expectations for when the Federal Reserve will begin raising its benchmark interest rate. But despite its losses on Friday, the greenback still recorded a gain for the week as investor worries about the outcome of Greece’s general election later this month pushed the euro lower against the dollar for most of the week. The dollar index, a measure of the greenback’s strength against a trade-weighted basket of six rival currencies, was down 0.46% to 91.9450. The dollar was at ¥118.50, compared with ¥119.65 late Thursday in New York. The euro was at $1.1839, from $1.1788. The pound rose slightly against the dollar, moving back above the $1.51 level after U.K. manufacturing output recorded strong growth in December. (Marketwatch)

Commodities

· Oil Hits April 2009 Low, Then Pares Loss On U.S. Oil Rig Data. Global oil markets resumed their slide on Friday, with Brent and U.S. crude hitting April 2009 lows and ending down for a seventh straight week, although prices recovered from their lows after a sharp drop in the U.S. oil rig count. Benchmark Brent crude broke below $49 a barrel but closed above the $50 support level it had clung to this week after oil services firm Baker Hughes reported the largest drop in 24 years in the number of U.S. oil drilling rigs. Brent settled down 85 cents at $50.11 a barrel, after falling earlier to $48.90. U.S. crude settled down 43 cents at $48.36, having hit $47.16 earlier. For the week, Brent lost 11% and U.S. crude 8%. (Reuters)

· Gold Rises On Lower Dollar, Shares After U.S. Data. Gold rose on Friday as the dollar and equities failed to react to a better-than-forecast U.S. jobs report, and the metal was set for the first weekly gain in four weeks as political uncertainty in Greece boosted demand for assets seen as safe. Spot gold rose to a session high of $1,221.30 an ounce, extending gains following the U.S. data, not far from a three-week peak of $1,222.40 hit on Tuesday. It was trading up 0.8% at $1,218.40 by 2:33 p.m. EST (1933 GMT). Silver was up 0.5% at $16.39 an ounce, while platinum rose 0.8% at $1,224.75 an ounce and palladium 1.6% to $799.97 an ounce. (Reuters)

Source: Kenanga