In US, consumer spending rose by 0.2% m-m in Dec as incomes surged by the most in 8 years, after the 0.4% m-m gain in Nov. The saving
rate increased to 6.5%, the highest since May 2009, from 4.1%. Wages and salaries increased 0.6 % m-m. Disposable income, or the money
left over after taxes, climbed 2.8% m-m after adjusting for inflation, the biggest gains since May 2008. Consumer comfort declined for a 4th
straight week, a sign the payroll tax increase that kicked in at the start of the year is starting to ripple through the economy. Initial jobless claims
rose 38,000 to 368,000 in the week ended Jan. 26, partially erasing a slide in the prior two weeks and reflecting the difficulty of adjusting the
figures for swings at the start of a year. “With appropriate policy accommodation, economic growth will proceed at a moderate pace and the
unemployment rate will gradually decline,” the central bank said in a statement. Household spending “advanced,” though “the unemployment
rate remains elevated.” With that being said, the open ended QE has not yet draw to a close.
In Euro zone, Germany’s retail sales fell by 1.7% m-m in Dec, compared to a 1.2% m-m gain in Nov and market expected 0.1% m-m drop. Over
the year, retail sales fell by 4.7%, compared to a 0.9% y-y fall in Nov. Unemployment rate unexpectedly fell to 6.8% from 6.9, with the number
of unemployed workers falling by 16K, while the market was forecasting 8K rise. In France, producer price fell by 0.3% m-m in Dec, exceeding
the market expected 0.1% m-m drop indicating a weak production activity. Consumer spending stagnated from Nov, while the market was
predicting a 0.2% m-m gain, after the 0.2% m-m gain achieved in Nov. As reported earlier, confidence indicator showed an improving
sentiment; however, the confidence has not translated to real economy.
In Japan, industrial production rose by 2.5% m-m in Dec, trailing the market expected 4.1% m-m gain, after a 1.4% m-m drop in Nov. Labor
cash earning fell by
1.4% y-y in Dec, after a revised 0.8% y-y contraction in Nov. Housing starts rose by 10.0% y-y, trailing the market expected
13.5% y-y gain, after a 10.3% y-y gain in Nov. Japan’s new leadership is targeting a 2.0% y-y inflation and is expected to add stimulus, which
has trigger a sharp deflation of JPY in the last 2 months. The weak yen would likely bolster the nation’s export business going forward.
In Hong Kong, retail sales volume rose by 8.8% y-y in Dec, compared to 9.5% y-y gain in Nov but exceeding the market expected 7.6% pace.
The city’s economy is riding on China’s economic recovery.
In Malaysia, the government held benchmark rate unchanged at 3.0% for a 10th straight meeting as economic growth and slowing inflation
eased the need for stimulus. Economic indicators suggest a “robust expansion” in Malaysia last quarter, driven by domestic consumption and
investment activity, the central bank said.
In Philippine, GDP rose by 1.5% q-q in 4q12, beating the market expected 1.2% pace. On y-y basis, GDP rose by 6.8%, compared to 7.2% y-y
pace in 3q12. The central bank Governor Amando Tetangco said he’s studying more measures to counter excessive capital inflows lured by
growth, joining South Korea and Singapore in warning that policy makers need to consider more steps to reduce the impact of such funds.
In Thailand, export rose by 13.6% y-y in Dec, compared to 27.1% y-y gain in Nov. Import rose by 1.3% y-y, after the 24.1% y-y gain in Nov.
Business sentiment index fell to 50.6 in Dec, after the 52.0 reading in Jan.
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