The ministry said growth was hit by a 1.8 percent quarter-on-quarter contraction in the services industry.

The advance GDP estimates are based on two months of data, but is given out as a preview to the trade-sensitive economy' s performance during the quarter.

On a year-on-year basis, GDP is estimated to have expanded 5.1 percent in the first quarter, slower than the 5.5 percent rise in the final three months of 2013.

The city' s central bank, the Monetary Authority of Singapore (MAS), forecast growth of 2.0-4.0 percent for 2014, against from 4.1 percent last year.

Manufacturing rose 4.5 percent from the preceding quarter and 8.0 percent year-on-year due to a strong rebound in the output from the biomedical and chemical segments, the trade ministry said.

Construction remained strong, expanding 10.7 percent from the previous quarter as the government ramped up infrastructure projects. The sector was up 6.5 percent from the previous year.

Despite the first quarter slowdown, the MAS said it would maintain its policy of allowing for a " modest and gradual appreciation" of the local dollar as the global economy improves.

Singapore uses the exchange rate rather than interest rates to contain inflation as the city-state imports almost all of its needs.

The MAS said in a separate statement there would be no change to the slope of an undisclosed band at which the dollar is allowed to move and to the level at which the currency is centered.

" The policy stance is assessed to be appropriate for containing domestic and imported sources of inflation, and ensuring medium-term price stability as a basis for sustainable growth," the MAS said.

" The outlook for the global economy has brightened," it added, pointing to improving prospects in the United States, European Union and Japan.

" Notwithstanding the weak growth outturn in the first quarter, the level of economic activity should stay in a broad upward trajectory for the rest of the year."

The central bank forecast this year' s overall inflation rate at 1.5-2.5 percent.

 

 

[BEIJING] China' s economic expansion slowed in the first three months of this year, according to an AFP survey, and remains on track for its worst annual performance in nearly a quarter-century as reform priorities trump growth concerns.

Singapore' s manufacturing sector grew year-on-year at a faster pace of 8 per cent in Q1, compared to 7 per cent in the previous quarter. The strong expansion - due to higher biomedical manufacturing and chemicals output - helped to boost overall GDP growth to 5.1 per cent year-on-year in Q1.

By Adam Haigh Apr 14, 2014 8:24 AM GMT+0800

Most stocks on Asia&rsquo s benchmark regional equities index fell, led by declines in industrial and raw-material companies.

The MSCI Asia Pacific Index was little changed at 137.84 as of 9:22 a.m. in Tokyo, before markets open in Hong Kong and China, after last week declining 1 percent. About three stocks fell for every two that rose on the gauge. Futures on the Standard & Poor&rsquo s 500 Index slipped 0.1 percent, indicating the U.S. equities benchmark index will extend last week&rsquo s biggest slide since June 2012 in which the gauge erased its gains for the year.

&ldquo Our view remains that a 10 to 15 percent correction in shares is to be expected at some point along the way this year,&rdquo said Shane Oliver, who helps oversee about $130 billion as Sydney-based head of investment strategy at AMP Capital Investors Ltd. &ldquo But it would be just a correction in a still rising trend. Any such dip should be seen as a buying opportunity.&rdquo

Japan&rsquo s Topix index was little changed as the yen strengthened 0.2 percent to 101.47 per dollar, extending its first weekly gain in four weeks. The Topix fell 13 percent this year though last week, the biggest decline among 24 developed markets tracked by Bloomberg. Australia&rsquo s S& P/ASX 200 Index retreated 0.4 percent today and New Zealand&rsquo s NZX 50 Index fell 0.6 percent. South Korea&rsquo s Kospi index lost 0.1 percent.

Futures on Hong Kong&rsquo s Hang Seng Index (HSI) and the Hang Seng China Enterprises Index of mainland shares listed in the city were little changed in the most recent trading sessions.

U.S. Rout

Citigroup Inc. (C) is due to report earnings today after JPMorgan Chase & Co. declined 7.5 percent in the week through April 11, the most since May 2012, as profit declined. The Nasdaq Composite Index last week capped its worst week since 2012 amid concern valuations have climbed too high as earnings season starts.

The MSCI Asia Pacific Index last week traded at 12 times estimated earnings, compared with 15.5 for the S& P 500 and 14.4 for the Stoxx Europe 600 Index, according to data compiled by Bloomberg.

Russia sought an emergency meeting of the United Nations Security Council after Ukrainian security forces clashed with pro-Russian gunmen in the eastern town of Slovyansk in the latest escalation in the crisis. The Security Council session was scheduled as U.S. and Ukrainian officials accused Russia of being behind the violence.

 

By Callie Bost and Jeremy Herron Apr 12, 2014 4:31 AM GMT+0800

U.S. stocks fell, giving the Standard & Poor&rsquo s 500 Index its worst week since 2012, amid disappointing results at JPMorgan Chase & Co. and signs hedge funds were dumping the bull market&rsquo s top performers. Treasuries rose, while oil hit a five-week high.

The S& P 500 sank 0.9 percent at 4 p.m. in New York. The Nasdaq Composite Index fell 1.3 percent to close below 4,000 for the first time in two months. The 10-year Treasury yield lost three basis points to 2.62 percent while 30-year yields hit a nine-month low. The dollar snapped five days of losses as investor risk appetite shrank amid a drop in global equities.

The S& P 500 sank 2.6 percent this week on concern that valuations aren&rsquo t justified as earnings start. JPMorgan, the first major bank to report, fell the most since 2012, dropping 3.7 percent after profit sank on lower revenue from fixed-income trading and mortgages. Consumer confidence rose in April to the highest level since July. China&rsquo s producer price index declined 2.3 percent in March, adding to signs of weak demand after data yesterday showed shrinking trade.

&ldquo You need to shake out some of the speculative money and throw water on the irrational exuberance,&rdquo Randy Frederick, managing director of trading and derivatives at Charles Schwab Corp. which manages $2.2 trillion in client assets, said in a phone interview. &ldquo It&rsquo s a good reminder that markets don&rsquo t go straight up. While the long-term is positive we need to have these steps back along the way. We need this kind of pullback.&rdquo

Equities Pullback

The S& P 500 is down 4 percent from a record close on April 2 and trades below its average price over the past 100 days. The Nasdaq, which has lost 8.2 percent from a March high, plunged 3.1 percent yesterday, the most since November 2011. The Nasdaq Biotechnology Index sank 2.6 percent today, bringing its loss from a February high to more than 20 percent, meeting the common definition of a bear market.

The percentage of hedge-fund bets that stocks will rise has decreased to 46 percent, compared with 2014&rsquo s high of 58 percent, according to an April 9 research note from Credit Suisse Group AG. Net exposure in the U.S. declined to the lowest level since August 2012, the report said.

&ldquo So far, exposure reductions have been measured and at least for the time being, there has been no mass rush for the exits,&rdquo Credit Suisse&rsquo s Jon Kinderlerer wrote. &ldquo Unsurprisingly, we have seen exposure being trimmed the most in information technology where the popular longs have underperformed significantly over the last few weeks.&rdquo

Hedge-Fund Holdings

Companies with high levels of hedge fund ownership have fallen about twice as much as the overall market. S& P 500 stocks that are most popular among the speculators have fallen 7.5 percent since April 2.

Hedge funds make up at least 30 percent of the shareholders in Allegion Plc, Dollar General Corp. and Constellation Brands Inc., the most among companies in the equities benchmark. About 37 percent of Allegion shares are owned by hedge funds, top among S& P 500 companies. The maker of security systems is almost 9 percent lower since April 2. H& R Block Inc., the tax software provider, is down 11 percent and is about 27 percent owned by hedge funds.

Pressure may be mounting on professional speculators with losses in individual stocks spurring more pain than they do for ordinary investors. The average hedge fund has 63 percent of its assets invested in the 10 largest holdings, twice as much as mutual funds, according to a Goldman Sachs Group Inc. note from Feb. 20. About 28 percent of their holdings changed in the fourth quarter, an all-time low, the note said.

Earnings Season

Investors have been anticipating corporate earnings reports to gauge how much weather effected results. Profit for members of the S& P 500 probably fell 0.9 percent in the first quarter, analysts now forecast, after anticipating a 6.6 percent rise in January. Sales increased 2.6 percent, according to projections.

Analysts have reduced earnings estimates more than they usually do over the last three months, according to Goldman Sachs Group Inc. strategists led by David Kostin. Average profit forecasts for S& P 500 companies fell about 4 percent in the first quarter, a percentage point more than normal, they wrote.

The selloff that began last week was sparked by growing concern that valuations may be too high as earnings season begins. The Nasdaq Composite trades at 35 times reported earnings of the companies in the index. That&rsquo s double the ratio for the S& P 500, which trades at about 17 times earnings.

Lackluster Earnings

Wells Fargo & Co. added 0.8 percent after the most profitable bank in 2013 said earnings rose 14 percent as fewer customers missed loan payments. Bed Bath & Beyond Inc. tumbled the most in three months yesterday after profit fell short of estimates.

&ldquo The market&rsquo s looking for a pretty lackluster earnings season and anything better than that will be viewed positively,&rdquo said Julian Chillingworth, who oversees about 22 billion pounds ($36.8 billion) at Rathbone Brothers Plc in London.

About 54 companies in the S& P 500 are scheduled to report results next week, including Coca-Cola Co., Goldman Sachs Group Inc., Google Inc. and General Electric Co.

The Thomson Reuters/University of Michigan preliminary April index of sentiment rose more than forecast, boosted by further improvement in the labor market that will provide some traction for the economy after a weather-related slowdown.

Volatility Gauge

The Chicago Board Options Exchange Volatility Index, the gauge of S& P 500 options prices known as the VIX, rose 8.3 percent after jumping 15 percent yesterday, the most since Feb. 3. The CBOE NDX Volatility Index of Nasdaq 100 contracts climbed 10 percent to the highest since December 2012, adding to a 16 percent surge yesterday.

The MSCI Emerging Markets Index declined 0.7 percent, halting five days of gains and trimming this week&rsquo s advance to 1.2 percent, its fourth consecutive weekly gain. The Hang Seng China Enterprises Index of mainland companies listed in Hong Kong slid 1.9 percent and the Shanghai Composite Index slid 0.2 percent.

The dollar was little changed at $1.38831 per euro, bringing this week&rsquo s decline to 1.3 percent. The Bloomberg Dollar Spot Index, which tracks the currency against 10 major counterparts, rose for the first time in six days, adding 0.1 percent. That trimmed the decline since April 4 to 1.1 percent.

Dollar Buying

&ldquo It&rsquo s dollar-buying and yen-buying in a sign of market jitters,&rdquo Brad Bechtel, managing director at Faros Trading LLC in Stamford, Connecticut, said in a phone interview. &ldquo More of the developed-market equity space is getting taken to the woodshed and sparked dollar- and yen-buying.&rdquo

Nickel rose for the 10th day, adding as much as 2.4 percent to $17,489 a metric ton, the highest since Feb. 20. Indonesia, the largest producer of the metal from mines, banned exports of ore nickel in January to encourage refining in the country.

Minutes of the Federal Reserve&rsquo s March 18-19 meeting released this week damped speculation U.S. policy makers are moving toward raising interest rates.

A 0.5 percent rise in producer prices in March exceeded forecasts while also signaling the central bank still has room to keep its benchmark-interest-rate target at almost zero without spurring above-target inflation.

Treasuries headed for a weekly gain, with 10-year yields dropping the most in a month. Thirty-year yields sank to 3.48 percent, the lowest since July.

West Texas Intermediate crude climbed 0.6 percent to $104.47 a barrel in New York, as U.S. consumer confidence rose in April and gasoline demand strengthened. Brent&rsquo s premium to WTI shrank to the narrowest since September.