The performance of equity markets around the world was mixed over the week ended January 9, 2015, with the MSCI AC World index declining 0.03 per cent.
The returns for developed markets were mostly in positive territory, with US equities (as represented by the S&P 500 index) posting a meagre gain of 0.34 per cent as the US dollar appreciated against the ringgit over the week.
Likewise, the Japanese equity market (represented by the Nikkei 225 index) posted a 1.04 per cent gain over the week (but incurred a 1.45 per cent loss in local currency terms).
European equities were in the red, with the benchmark Stoxx 600 index incurring a 1.51 per cent loss over the week, partially driven by the weakening of the euro against the ringgit.
Emerging and Asian markets outperformed their developed counterparts, with the MSCI Emerging Markets index posting a 1.81 per cent gain and the MSCI Asia ex Japan index posting a 0.97 per cent gain over the week.
The performance of the various East Asian markets under our coverage were varied, with countries like South Korea and Hong Kong seeing their equity markets posting gains (2.62 and 1.3 per cent respectively) over the week but countries like Taiwan (represented by the TWSE index) declining 0.32 per cent.
China’s HSML 100 index posted a 2.36 per cent gain over the week, while the local equity market continued its relentless march higher, with the Shanghai Composite index and the CSI 300 index increasing 3.19 and 1.97 per cent respectively over the week.
Over in Southeast Asia, performances of markets under our coverage were also mixed, with Thailand and Indonesia’s equity markets posting gains (four and 0.1 per cent respectively), while Malaysian and Singaporean equities incurred losses of 1.16 and 0.23 per cent respectively over the week.
In other emerging markets, India’s equity market (as represented by the Sensex index) posted a 1.27 per cent gain over the week, while Brazilian equities (using the Bovespa index) increased 3.71 per cent over the week.
Russian equities (represented by the RTSI$ index), which have taken a beating over the past few months, were 0.72 per cent higher from the previous week.
Energy prices continued its slump into the new year, with prices of WTI crude oil declining from US$52.70 per barrel to US$48.36 over the week, slumping 7.3 per cent in ringgit terms over the week.
Southeast Asia: Inflation in Thailand cools more than expected, Malaysia’s exports rebound in November
Thailand’s CPI increased by 0.6 per cent year-on-year (y-o-y) in December, cooling from a prior 1.26 per cent y-o-y and falling short of consensus estimates of a 1.1 per cent y-o-y increase.
On a month-on-month basis, CPI actually fell by 0.5 per cent, down from a prior 0.12 per cent decline.
However, core CPI rose 1.69 per cent y-o-y in December, up from a prior 1.6 per cent y-o-y increase and rising more than the 1.57 per cent consensus estimate.
The latest data revealed that broad-based declines across prices of goods were witnessed in December, with lower energy-related prices a contributor to the current disinflationary trend in the kingdom.
With a benign inflation environment and sluggish macroeconomic conditions, policy-makers are expected to continue remaining dovish and to keep monetary policy loose to spur economic growth in the kingdom.
Malaysia’s exports experienced a turnaround in November, posting a 2.1 per cent y-o-y gain, significantly higher than the downward revised 3.2 per cent y-o-y decrease in the preceding month.
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