The Philippine GDP expanded by 8.3% year-on-year in Q1 of 2022, topping market consensus of 6.6% and after a marginally revised 7.8% advance in Q4. The latest reading pointed to the fourth straight quarter of growth and the fastest pace since Q2 2021, boosted by election-related spending. Household consumption quickened amid further easing of COVID-19 restrictions (10.1% vs 7.5% in Q4), and fixed investment rose slightly faster (11.0% vs 10.8%). Meanwhile, government spending growth hit its lowest in three quarters (3.6% vs 7.8%); and net external demand contributed negatively to the GDP, as exports rose by 10.3% while imports gained at a faster 15.6%. On the production side, the largest contributors to the growth were manufacturing (10.1% vs 7.3%), wholesale and retail trade, repair of motor vehicles and motorcycles (7.3% vs 7.1%), and transportation and storage (26.5% vs 18.7%). For 2021, the growth outlook was revised marginally higher to 5.7% from 5.6%.

US stock futures wobbled on Thursday after the major averages extended a relentless selloff overnight, as investors digested stronger-than-expected inflation figures. Futures contracts tied to the three major indexes shifted between gains and losses. In regular trading on Wednesday, the Dow fell 1.02%, the S&P 500 lost 1.65% and the Nasdaq Composite plunged 3.18%, with all three averages sinking further to their lowest in over a year. The moves came as data showed consumer prices jumped 8.3% in April, which was higher than the 8.1% forecast and still running close to a 40-year high of 8.5% logged in March. The core CPI also came in higher than expected at 6.2% in April, stoking worries among investors that elevated prices may persist. Investors continued to gauge how aggressively the Federal Reserve will tighten monetary settings to rein in rising prices, with uncertainty surrounding their next move set to drive further market volatility.

The Shanghai Composite rose 0.2% to around 3,064 while the Shenzhen Component edged up 0.3% to 11,146 on Thursday, extending gains in the previous two sessions, amid hopes that authorities would deliver on repeated pledges to boost growth and stabilize financial markets. In the latest developments, China’s State Council vowed to use monetary and fiscal tools to boost employment amid the economic fallout from the pandemic. The country’s securities regulator also pledged action to shore up confidence in its battered stock market, joining a chorus of voices attempting to sooth the frayed nerves of investors. Thursday’s moves followed strong gains in the previous session when major cities reported sharp falls in Covid cases. High-growth healthcare and technology names led the advance, with strong gains from Shandong Xinhua (10%), Shanghai Junshi (12.2%) and East Money (2.9%).

Retail trade in Malaysia increased 10.8 percent year-on-year in March 2022, accelerating from a 10.2 percent gain in the previous month. It was the sixth straight month of increase in retail sales, and the steepest growth since last May, amid lifting Covid-19 restrictions. Sales increased for trade not in stores, stalls or markets (26.5 percent), retail sale in non-specialized stores (16.2 percent), retail sale via stalls & markets (11.8%), and retail sale of cultural & recreation goods in specialised stores (11.2%). Also, wholesale trade went up 8.6 percent in March, following a 6.2 percent gain in the previous months. Meanwhile, sales of motor vehicles rose 11.1 percent, after a 12.5 percent growth in the prior month. On a monthly basis, retail trade grew 2.2 percent in March, rebounding from a 0.4 percent drop a month earlier, which was the first monthly decline in 8 months.

Annual inflation rate in the US slowed to 8.3% in April from a 41-year high of 8.5% in March, but less than market forecasts of 8.1%. Energy prices increased 30.3%, below 32% in March namely gasoline (43.6% vs 48%) while fuel oil increased more (80.5% vs 70.1%). On the other hand, food prices jumped 9.4%, the most since April 1981 and prices also rose faster for shelter (5.1% vs 5%) and new vehicles (13.2% vs 12.5%). On a monthly basis, consumer prices were up 0.3%, slightly more than expectations of 0.2% but below a 16-year high of 1.2% in March. The index for gasoline fell 6.1%, offsetting increases in the indexes for natural gas (3.1%) and electricity (0.7%). Despite the slowdown in April which suggests that inflation has probably peaked, the inflation is unlikely to fall to pre-pandemic levels any time soon and will remain above the Fed's 2% target for a long time as supply disruptions persist and energy and food prices remain elevated.

Retail sales in Indonesia grew by 9.3 percent year-on-year in March 2022, slowing from a 12.9 percent rise a month earlier and pointing to the softest rise since last October. Sales moderated for fuels (48.5% vs 55.1% in February), food beverages & tobacco (15.7% vs 21.3%), and clothing (6.4% vs 10.2%). In addition, there were declines in sales of home appliances (-18.8% vs -22.8%), information & communication (-18.0% vs -15.5%), and cultural & recreational goods (-1.4% vs -0.2%). By contrast, sales of automotive parts & accessories rebounded strongly (6.2% vs -5.3%). On a monthly basis, retail sales rose by 2.6 percent in March, the first gain in three months, following a 4.5 percent drop in February.