Malaysia

· The Overnight Policy Rate Was Left Unchanged At 3.25% for the fifth straight Monetary Policy Committee meeting and the second of six scheduled for 2015. Yesterday’s monetary policy statement took note of the concurrent trends of moderate expansion of the global economy and increasing divergence in growth momentum between advanced and emerging economies. The recent development of uncertainties in the policy environment were said to contribute to a shift in sentiment in international financial markets. Since the last meeting no fewer than five central banks in the region have turned to monetary policy easing, with Australia, China, India and Indonesia all cutting their policy rates by 25 basis points. (Please refer to Economic Viewpoint for further comments)

Global

· World Food Prices Continue to Fall in February. Global food prices fell 1% in February to their lowest in more than fourand- a-half years, with cereals, meat and sugar declining, oils steady and only dairy prices rebounding sharply, the United Nations food agency said on Thursday. The U.N. Food and Agriculture Organization's (FAO) price index, which measures monthly changes for a basket of cereals, oilseeds, dairy, meat and sugar, averaged 179.4 points last month, 1.8 points below its reading in January. High global production, low crude oil prices and limited demand from major importers including China have helped cap food prices for the past year and the index has now been declining since April 2014 to reach its lowest since July 2010. (Reuters)

Asia

· China Aims for Around 7% Economic Growth in 2015. China aims to grow its economy by around 7% in 2015 and to keep consumer inflation at around 3%, Premier Li Keqiang said in remarks prepared for delivery at yesterday’s opening of the annual meeting of parliament, the National People's Congress. The annual growth target was lower than a target of 7.5% in 2014, reflecting the government's bid to pursue slower but higher-quality growth after three decades of breakneck expansion. Weighed down by a sputtering housing market, industrial overcapacity and reduced government investment, China's economy grew 7.4% in 2014, its slowest expansion in 24 years. The government will keep annual growth in broad M2 money supply at about 12%, Li said in the work report. Li also said China would have a budget deficit of 2.3% of gross domestic product in 2015. (Reuters)

· Thai Consumer Confidence at 7-Month Low in February, Survey Shows. Consumer confidence in Thailand fell for a second straight month in February, according to a university survey, as low commodity prices and marginal economic growth kept down domestic demand. The consumer confidence index of the University of the Thai Chamber of Commerce fell to 79.1 last month from 80.4 in January and December's 81.1, an 18-month high. The February reading is the lowest since July's 78.2. While a reduction in retail oil prices from last year has given consumers more to spend, falling prices for rubber and rice have hurt demand in the provinces. (Reuters)

USA

· Largest US Banks All Pass Latest Round of Fed Stress Tests. All of the nation's 31 largest banks are adequately fortified to withstand a severe U.S. and global recession and keep lending, the Federal Reserve said Thursday. Results of the Fed's annual "stress tests" show that as a group, the 31 banks are stronger than at any time since the 2008 financial crisis struck. The banks undergoing the stress tests included JPMorgan Chase & Co., Bank of America, Citigroup and Wells Fargo and Co. - the four biggest U.S. banks by assets. Under the stress tests' hypothetical "severely adverse" scenario, the United States would endure a catastrophic recession in which unemployment would reach 10%, home prices would sink 25%, the stock market would drop nearly 60% and market volatility would rise significantly. The tests compare the losses projected for each bank with the capital - the cushion it holds against losses - each holds. The Fed said that under that scenario, the 31 banks would suffer combined loan losses of $340 billion. It estimated that losses of that magnitude would reduce the 31 bank's capital from 11.9% of its loans as of the third quarter last year to 8.2% at the end of 2016. (AP)

 · Applications for US Jobless Aid Inch Up to a 10-Month High. The number of people seeking unemployment benefits rose last week to the highest level since May, though the pace of applications remains at a level consistent with steady hiring. Weekly applications rose 7,000 to a seasonally adjusted 320,000, the Labor Department said Thursday. The fourweek average, a less volatile measure, increased 10,250 to 304,750, a six-week high. The number of applications tends to reflect the pace of U.S. layoffs. The four-week average has remained near or below 300,000 since September, a historically low level that typically signals healthy job gains. (AP)

· U.S. Factory Orders Fall for Sixth Straight Month. New orders for U.S. factory goods unexpectedly fell in January, posting their sixth straight monthly decline, a sign of weakness in the manufacturing sector. The Commerce Department said on Thursday new orders for manufactured goods slipped 0.2% after a revised 3.5% decline in December. Economists polled by Reuters had expected factory orders to gain 0.2% in January after a previously reported 3.4% tumble in December. The department also said orders for non-defense capital goods excluding aircraft - seen as a measure of business confidence and spending plans – rose 0.5% instead of the 0.6% advance reported last month. (Reuters)

Europe

· Upbeat ECB Ready to Start Printing Money Next Week. The European Central Bank said it will start printing money to buy bonds next Monday and delivered a robust economic outlook that will make it hard to extend the plan beyond its envisaged Sept. 2016 end-date The eurozone's central bank has said it will buy 60 billion euros a month until September 2016 or until inflation is pushed backed towards a target of close to but below 2%. Interest rates were left on hold at record lows just above zero at its meeting off-base in Cyprus on Thursday. ECB staff foresee euro zone inflation rising from 0% this year to 1.8% in 2017, which would put it in line with the bank's target of close to but below 2%. (Reuters)

· ECB Raises Economic Forecasts for Eurozone. The European Central Bank significantly raised its economic forecasts for this year and next in a sign of confidence that Europe—one of the global economy’s trouble spots in recent years—is gaining strength even before the bank launched a €1 trillion-plus ($1.1 trillion) stimulus package. The ECB boosted its eurozone forecasts from three months ago, saying it now expects 1.5% growth this year, 1.9% in 2016 and 2.1% in 2017. It previously had predicted the currency bloc’s economy would grow 1% in 2015 and 1.5% in 2016. (Reuters)

· German Industrial Orders Plunge, Darkening First-Quarter Growth Outlook. German industrial orders fell far more than forecast in January, posting their largest drop since August, data showed on Thursday, casting a shadow over what had previously looked like a strong start to 2015 for Europe's largest economy. Bookings for goods made in Germany declined by 3.9% on the month after rising sharply in December, data from the Economy Ministry showed. The headline figure undershot the Reuters consensus forecast for a 1.0% decline and undercut even the lowest estimate for a 2.5% fall. The decrease was driven by sharp declines in contracts for capital and intermediate goods and a smaller drop in orders of consumer products. The Economy Ministry said fewer bulk orders played a role.. (Reuters)

Currencies

· Euro Sinks to 11½ Year Low, Bonds Gain After ECB. The euro fell to an 11½ year low against the dollar on Thursday as U.S. and eurozone bond prices rose, after the European Central Bank spelled out its 1 trillion-euro stimulus plan that begins next Monday. The euro slumped below $1.100 for the first time since September 2003. It was last down 0.5% at $1.1024. Against the yen, it was down 0.1%, at 132.46 yen. In contrast, the dollar strengthened to an 11½ year peak against a basket of currencies ahead of Friday's U.S. payrolls report. If the data shows further improvement in wages and job growth, it will reinforce an expectation that the U.S. Federal Reserve will raise interest rates later this year. The dollar index was up 0.45% at 96.398. (Reuters)

Commodities

· Oil Falls in Volatile Trade an Supply Worries, Dollar and Iran. Oil closed lower on Thursday in volatile trade, as a soaring dollar and the U.S. pursuit of an Iranian nuclear deal offset earlier gains from supply concerns in Libya and Iraq. Libya's declaration of force majeure on nearly a dozen of its oilfields due to security concerns and arson attacks by Islamic State militants on Iraqi oil wells helped prices climb during the European session. Those betting on a "blowout" in the spread between benchmark Brent oil and U.S. crude added to the market's volatility, traders said. Brent settled down 7 cents at $60.48 a barrel, after rallying more than $1 earlier. U.S. crude finished down 77 cents at $50.76, after rising to $52.40 earlier. (Reuters)

· Gold Falls Below $1,200/oz After Rising on ECB Forecasts. Gold eased on Thursday, changing direction and falling below $1,200 an ounce as short-covering dried up after buoying prices following the European Central Bank's announcement that it will lift its 2016 inflation forecast. Spot gold was down 0.04% at $1,199.45 an ounce by 2:10 p.m. EST (1910 GMT). U.S. gold for April delivery settled down 0.4% at $1,196.20 an ounce. Spot silver was flat at $16.19 an ounce, while palladium was down 0.5% at $824.78 an ounce and platinum was down 0.02% at $1,176.95 an ounce. (Reuters)