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BoJ To Maintain Easy Policy Until Inflation Steadies At 2%, Says Iwata




The Bank of Japan will maintain its loose monetary policy until 2 percent inflation target is achieved in a stable manner, Deputy Governor Kikuo Iwata said Thursday.
"Even if the CPI reached 2 percent year-on-year, unless the Bank projects that inflation is likely to remain at around 2 percent in a stable manner, it will not simply end monetary easing," Iwata told business leaders in Miyazaki.
"What is most important at this juncture is that the Bank steadily make progress under the current policy framework," he added.
The negative impact from sales tax hike on households' income will be mitigated by the economic measures taken by the government. Moreover, the tax hikes seem to have already been factored in substantially among households, he noted.
"In sum, the consumption tax hike will temporarily generate a swing in the economy's growth rates and negatively affect disposable income," Iwata said.
But the virtuous cycle that has already been working in Japan's economy will continue and the economy is likely to continue growing at a pace above its potential, as a trend, he said.

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Fed's Rosengren: fED Balance Sheet Would Shrink Quickly Without Sales



"Our intention is to get back to a more normal size balance sheet," Boston Fed President Eric Rosengren said at a Florida conference, acknowledging the risk that interest rates are likely to rise in the future, leading to possible losses on the balance sheet that is now worth $4 trillion and growing.
"If we stopped purchasing mortgage backed securities, that part of the balance sheet comes down actually relatively quickly," he said.
As for the purchases of longer-term Treasury bonds, Rosengren said that side of the balance sheet also declines "surprisingly quickly by just not doing any purchases and not reinvesting."


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Malaysia's Manufacturing Sales Continue To Rise





Malaysia's manufacturing sales continued to increase in December, the Department of Statistics said Monday. The sales value of the manufacturing sector rose 5.4 percent, after posting 4.7 percent growth in November. Compared with the preceding month, the sales value advanced 4 percent in December. Further, data showed that total employees engaged in the manufacturing sector in December totaled 1.03 million, an increase of 0.3 percent from November. Likewise, sales and wages grew 11.1 percent month-on-month in December. At the same time, productivity increased 3.6 percent from November and by 4.1 percent from December 2012.

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China Money Markets on Edge



Short-term rates likely to rise with PBOC skipping open market operations Maturing reverse repos to drain CNY450 billion this week
Rates have been creeping up since markets reopened on Friday
PBOC inaction could fuel tightening fears

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China January Exports and Imports Well Above Forecasts




China's exports beat expectations in January, rising 10.6 percent from a year earlier, while imports jumped 10 percent, leaving the country with a trade surplus of $31.9 billion for the month, the Customs Administration said on Wednesday.

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Australia's Inflation Expectations Remain Unchanged In February




The expected inflation rate amongst Australian consumers remained unchanged and stayed well within the central bank's target band of 2 percent-3 percent, a monthly survey by the Melbourne Institute revealed Thursday.
Consumers forecast a 2.3 percent inflation over the coming twelve months, the same rate as estimated in January.
Viet Nguyen, a research fellow at the Melbourne Institute, said, "The moderate upticks in consumer inflationary expectations since September 2013 reflect, to a certain extent, expectations of moderate upticks in economic activity in the coming months."
This provides support for the Reserve Bank of Australia's current 'wait and see' stance, said Nguyen.

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Australian Dollar Extends Rally After China CPI, PPI Data



Inflation in China rose 2.5 percent year-over-year in January, unchanged from last year and slightly higher than the 2.4 percent increase expected by economists. Producer price index dropped to 1.6 percent, in line with estimates following previous month's 1.4 percent drop.
The Australian dollar extended its uptrend against its major rivals following the report. As of 8:35 pm ET Thursday, the aussie was trading at 92.26 against the yen, 1.5172 against the euro, 1.0784 against the NZ dollar and 0.9020 against the US dollar.


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Japan December Industrial Output Growth Revised Down To 7.1%



Japan's industrial production increased at a weaker pace in December than estimated earlier, revised figures from the Ministry of Economy, Trade and Industry revealed Monday. Industrial production grew 7.1 percent in December from the corresponding month of last year, which is slightly weaker than the 7.3 percent gain the government had estimated on January 30. However, the December outcome was better than November's 4.8 percent rise. Seasonally adjusted industrial production moved up 0.9 percent compared to November, after dropping by 0.1 percent in November. The flash estimates were for a bigger growth of 1.1 percent at the end of last year. Data showed that Capacity utilization in Japanese companies climbed 2.2 percent sequentially in December, marking a sharp improvement from the 0.5 percent contraction estimated earlier.

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Yen Declines As BoJ Keeps Monetary Policy Unchanged




The Japanese yen slipped against other major currencies on Tuesday's Asian deals after the Bank of Japan retained its monetary policy intact and said the economy is recovering moderately.
The Bank decided to expand monetary base at an annual pace of about 60-70 trillion yen.
The BOJ planned to double the scale of Stimulating Bank Lending and Growth-Supporting Funding facilities and extend the period of these facilities by an year.
The yen slipped to a 5-day low of 102.44 against the greenback, off early high of 101.76. Against the franc, euro and the pound, the yen declined to near 3-week lows of 114.84, 140.45 and 171.34, easing from early highs of 114.13, 139.50 and 170.23, respectively.
The yen fell to near a 4-week low of 93.48 against the loonie and a 6-day low of 92.86 against the aussie from its previous highs of 92.89 and 92.08, respectively.

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Australia Online Job Vacancies Rise 1.4% In January

Australia's online job vacancies increased for the fifth successive month in January, with strong rises recorded across all categories, data released by the Department of Employment showed Wednesday. The number of job vacancies advertised on the internet, on an unadjusted basis, increased 1.4 percent month-on-month in January, marking the fifth consecutive increase. The increase mainly reflected recovering business confidence, strong rise in building approvals, and improvement in retail spending, the agency said. With a 2.9 percent sequential growth, vacancies of sales workers recorded the biggest increase in January, followed by vacancies of technicians and trades workers, which gained 2 percent. On an year-on-year basis, unadjusted online vacancies decreased 3.8 percent at the beginning of the year, data showed.

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