Malaysia

National Economic Council Briefed on Nation's Economy. The National Economic Council chaired by Prime Minister Datuk Seri Najib Tun Razak was Monday briefed on the country's economy, including the ringgit and stock market performance by Bank Negara Malaysia and Bursa Malaysia. The Prime Minister's Office, in a statement, said Malaysia's economic fundamentals remained strong, reflected by the gross domestic product (GDP) growth of 4.9% for the second quarter of this year. In the coming days, the PMO said the prime minister would engage corporate leaders and seek their views on the current economic situation. It said the feedbacks would help the government undertake measures to set Malaysia on the right trajectory to become a developed, harmonious and prosperous nation. (Bernama)

BNM Sees Renminbi Playing Greater Role for Malaysian Companies. The diversification of renminbi-dominated financial infrastructures in the country will support trade, investment and financial flows with China, according to Bank Negara Malaysia Governor Tan Sri Dr Zeti Akhtar Aziz. Zeti said the usage of renminbi in Malaysia has grown rapidly, with the daily size of renminbi foreign exchange volume at 6.7bil renminbi. She said that given China’s significance as Malaysia’s largest trading partner, the settlement of trade and investment in renminbi significantly lowers costs and promotes greater cross-border trade and investment activity. (The Star)

Sarawak Formulates Plan to Achieve 11MP Goals. The Sarawak Socio-Economic Transformation Plan (SETP) will enable the state to address the challenges and issues faced in raising income levels and reducing income disparity, which are its main goals under the 11th Malaysia Plan (11MP).The plan was tabled by Chief Minister Tan Sri Adenan Satem in the one-day Sarawak 11MP State Legislative Assembly sitting here today. He said under 11MP, the state is projecting economic growth of between 6% to 7% per annum. The nominal GDP per capita is also expected to increase from RM46,489 to RM61,406. Adenan said the SETP is Sarawak’s “Catch Up Plan” over 25 years from 2016 until 2030 and is to be implemented in phases. (Bernama)

Asia

Thailand’s Economic Growth Slows. Thailand’s economic growth slowed in the second quarter with the outlook clouded by drought and the yuan’s devaluation. GDP gained 2.8% in the three months through June from a year earlier, the National Economic and Social Development Board said on Monday. That compares with 3% in the previous period. GDP grew 0.4% from the previous quarter. The NESDB cut its GDP growth forecast for this year to 2.7% - 3.2% from an earlier estimate of 3% - 4%. Manufacturing fell 0.7% in the second quarter from a year earlier. Private consumption grew 1.5%, compared with 2.4% in the previous period. (Reuters)

Singapore July Non-Oil Domestic Exports Dip 0.8%. Singapore's non-oil domestic exports (NODX) in July shrank 0.8% from the same month a year ago, as a drop in non-electronic shipments outweighed the rise in electronic exports. The figure released by International Enterprise (IE) Singapore was better than the 2.1% decline in a median forecast of 10 economists in a Reuters poll. The July NODX drop comes after a 4.5% YoY rise in June. On a seasonally adjusted basis, July NODX rose 2.4% from June. The level of NODX reached $13.9 billion in July 2015, higher than the $13.6 billion in June. (The Straits Times)

Singapore July Home Sales Rise to Two-Year High. Singapore home sales rose in July to the highest in two years, driven by new projects. Developers sold 1,594 units last month compared with 375 units in June, according to data released Monday by the Urban Redevelopment Authority. That’s the highest since June 2013, the data showed. Singapore is closely watching the domestic housing market that’s in a correction phase amid the longest decline in 13 years, Finance Minister Tharman Shanmugaratnam said last week. Home sales dropped to a six-year low last year. (Bloomberg)

Japan’s Holdings of Treasuries Dip to Lowest Level Since 2013. Japan’s holdings of U.S. Treasuries dipped below $1.2 trillion for the first time since 2013 even as purchases of the government debt accelerated among foreigners as a whole. Japan, the second-largest foreign holder, saw its holdings fall by $17.8 billion in June, the biggest drop in two years, to $1.197 trillion, according to Treasury Department data released Monday. China’s holdings of Treasuries rose by about $900 million to $1.27 trillion. Net foreign purchases of Treasuries were $69.8 billion in June, the most since February 2014, the report showed. (Bloomberg)

USA

Home Builder Sentiment Rises in August. U.S. homebuilder sentiment rose in August to its highest level since almost a decade ago, the National Association of Home Builders said on Monday. The NAHB/Wells Fargo Housing Market index rose to 61 from 60 in July. It was in line with economists' expectations, according to a Reuters poll. The single-family home sales component rose to 66 from 65 to mark its highest level since November 2005. The gauge of single-family sales expectations for the next six months was steady at 70, while prospective buyer traffic rose to 45 from 43 to mark the highest reading since December. (Reuters)

Signs of Deterioration in U.S. Treasuries Liquidity. There are some signs of a decline in liquidity in the U.S. Treasuries market, though overall, how easily government securities can be bought and sold remains "fairly favorable," according to a New York Federal Reserve blog post on Monday. Traders have been concerned about Treasury market liquidity amid speculation over a possible Federal Reserve interest rate hike. The cost of how quickly investors can convert a Treasury security into cash is critical for financial markets because a U.S. government bond is considered the safest and most liquid in the world. (Reuters)

Europe

IMF Involvement in Greece Bailout Indispensable. The International Monetary Fund's involvement in Greece's third bailout remains indispensable for Germany, a Finance Ministry spokesman said on Monday. A Finance Ministry spokesman said IMF Managing Director Christine Lagarde would only propose further financial involvement by the Fund in the bailout if Greece fulfils requirements on the implementation of reforms by October and a first review of the bailout is successful. The spokesman added that no precise timetable for the type of debt relief would be given. (Reuters)

German Growth Seen Strong in Second Half, China a Worry – Bundesbank.German growth will remain strong in the second half of the year on rising consumption and growing exports but the global outlook is clouded by the increasing risk of a big economic slowdown in China, the Bundesbank said on Monday. Germany will benefit from big real income increases at home, the euro zone's recovery, the weaker euro and accelerating growth in the United States and Britain, two key trading partners, the German central bank said in a monthly economic report.

Currencies

Dollar Rises on Fed Expectations. The dollar advanced on Monday, rising against a basket of currencies for a third straight session, as traders focused on potential U.S. interest rate hikes and shook off worries about a China-led "currency war." Against the euro, the dollar traded at its strongest in five days, reaching $1.1063 per euro before easing to $1.1073, up around 0.30% on the day. The dollar index was last up 0.30%. The greenback was ahead 0.10% against the Japanese yen at 124.45 yen and up 0.35% against sterling at $1.5587. (Reuters)

Commodities

U.S. Crude Near 6.5-Year Low. Oil fell about 1% on Monday, with U.S. crude settling within range of a new 6.5-year low, after Japan said its economy contracted in the second quarter and China's slowdown continued to weigh on sentiment. U.S. light crude settled down 63 cents, or 1.5%, at $41.87 a barrel. Brent settled down 45 cents, or nearly 1%, at $48.74 a barrel. It earlier hit a session low of $48.35, about $3 above its six-year low of $45.19 set in January. Oil has lost about a third of its value since June. (Reuters)

Gold Firms on Weak U.S. Data. Gold firmed on Monday, building on its biggest weekly rise in three months, buoyed by weaker-than-expected U.S. data and lingering uncertainty over the implications of China's yuan devaluation. Gold rallied to its highest since mid-July last week after Beijing's mini-devaluation of the yuan. Spot gold was up 0.2% at $1,116.40 an ounce by 1902 GMT, while U.S. gold futures for December delivery settled up 0.5% at $1,118.40 an ounce. Spot silver was up 0.7% at $15.32 an ounce, platinum rose by 0.4% to $992.50 and palladium was down 0.6% at $612. (Reuters)