Trader's highlight

DJI - NEW YORK, Dec 7 (Reuters) - The Dow and the S&P 500 advanced modestly on Friday, though another sell-off in Apple depressed technology shares and kept the Nasdaq negative, overshadowing a sharply better-than-expected jobs report.

Trading was light, continuing the week's trend of slight moves and anemic volume. The S&P 500 ended up a mere 0.1 percent for the week, following several volatile sessions that repeatedly pushed it in and out of positive territory. The benchmark index is just 3.8 percent below the 2012 intraday high of 1,474.51 reached in mid-September.

Equities opened higher after the non-farm payrolls report, which showed 146,000 jobs added in November, far more than had been expected, while the U.S. unemployment rate dropped to 7.7 percent. A sour reading on consumer sentiment caused an erosion of those gains, though markets rebounded going into the close.

The Thomson Reuters/University of Michigan's consumer sentiment index for early December fell to its lowest level since August. Sentiment fell on growing concerns over the "fiscal cliff" debates in Washington, which have been a major factor preventing broader moves as well.

"We're not as concerned as we were a few months ago because of improvement like you can see in the employment number, but there's such a wild card over the cliff," said Bruce McCain, chief investment strategist at Key Private Bank in Cleveland, Ohio. "There are such concerns about what could happen that markets will be overhung until a resolution is more certain."

One of the biggest drags on the Nasdaq was Apple which fell 2.6 percent to $533.25, extending its losses for the week to 8.9 percent. This was the worst week for the stock since May 2010, and with the losses, the stock of the largest U.S. company by market value is now down 24.4 percent from an all-time intraday high reached in late September.

The Dow Jones industrial average gained 81.09 points, or 0.62 percent, to 13,155.13 at the close. The Standard & Poor's 500 Index  rose 4.13 points, or 0.29 percent, to 1,418.07. The Nasdaq Composite Index slipped 11.23 points, or 0.38 percent, to close at 2,978.04.

U.S. House Speaker John Boehner said that talks this week with President Barack Obama produced no progress, and he renewed his demand that the president provide a new offer to avert the series of tax increases and spending cuts that are likely to hurt economic demand in 2013.

NYMEX - NEW YORK, Dec 7 (Reuters) - U.S. crude futures slipped on Friday in choppy trading as Europe's economic problems and uncertainty about budget wrangling in the United States put pressure on crude futures after a brief rally on a supportive U.S. jobs report.

CBOT Soybean oil- Dec 7 (Reuters) - Soybean futures on the Chicago Board of Trade fell 1.3 percent on Friday as traders booked profits after a four-day rally and ahead of a monthly U.S. government cropb report next week, traders said.

 

·     January soybeans rose to a one-month top, and then retreated and settled below the previous day's low. Such a reversal can signal the end of an upward price trend.

·    Losses accelerated late in the session after January soybeans fell below the previous day's low of $14.73-1/4, with about 15 minutes left to trade.

·    Despite the day's setback, soybeans ended the week up 2.2 percent, their third straight weekly advance.

·     Soymeal ended the week up 1.8 percent and soyoil rose 2.9 percent. It was the third straight weekly rise for each product.

·    Improving crop weather for South American adds pressure. The Commodity Weather Group said rains expected in southern Brazil over the next week are expected to ease moisture concerns for corn and soybean development.

·    Additional pressure stemmed from a surprisingly strong American jobs report for November that pointed to gatheringn momentum in the economy - a factor that lifted the U.S. dollar and dulled demand for risky assets including commodities.

·     Market shrugged at USDA's confirmation that exporters soldn 115,000 tonnes of U.S. soybeans to China for delivery in 2012/13.

·     Trade expects USDA to lower its forecasts of U.S. and global 2012/13 soybean ending stocks in its monthly supply/demand reports next week.

FCPO - KUALA LUMPUR, Dec 7 (Reuters) - Malaysian palm oil futures closed flat on Friday, but notched their biggest weekly loss in almost a month amid an uncertain outlook where record high stocks are weighing on prices at the same time as expectations are rising for a pick up in demand.

Palm oil futures have fallen almost 28 percent so far this year on record stocks and concerns that the euro zone debt crisis would reining in global growth.

"Palm oil is stuck," said a trader with a commodities brokerage in Kuala Lumpur. "It is undervalued as biodiesel demand has kicked in because of the high margins, but it also cannot go higher because of high stocks."

The benchmark February contract on the Bursa Malaysia Derivatives Exchange settled up 0.04 percent to 2,296 ringgit ($750) per tonne in see-saw trade. The contract recorded a decline of about 3 percent for the week, its third straight weekly loss and the steepest fall since Nov. 11.

Total traded volumes stood at 34,886 lots of 25 tonnes each, compared to the usual 25,000 lots.

Malaysian palm oil stocks probably hit a record 2.58 million tonnes in November, a Reuters survey showed ahead of official data on Monday, helping the tropical oil widen its discount to competing Argentine soyoil to $360 per tonne.

The discount remains unsustainable and will narrow as more demand shifts to palm oil in the next few months, especially with wet weather delaying soy plantings and curbing yields in the world's biggest soyoil exporter Argentina.

Traders are watching for cargo surveyor data on Malaysia's Dec. 1-10 palm oil exports on Monday to confirm strong demand as No.2 edible oil buyer China stocks up before stricter quality controls on the refined grades come into effect on Jan. 1.

In addition, export data may be even stronger as Malaysian planters scramble to exhaust an annual tax-free export quota totalling 3.5 million tonnes that is set to expire at the end of December.

Malaysia's Commodities Ministry will hold a briefing for refiners on Monday to get feedback on the government's plan to cut crude palm oil export taxes and completely dismantle the tax free export quota for the grade, traders said.

Some planters are asking for the quota to continue until stocks fall below 2 million tonnes.

Brent crude steadied above $107 per barrel on Friday, but prices were headed for their biggest weekly loss in more than a month on worries about the euro zone economy and a looming fiscal crisis in the U.S., the world's top oil consumer.

In palm oil's competing markets, U.S. soyoil for December delivery dged up 0.2 percent in Asian trade. The most active May 2013 soybean oil contract on the Dalian Commodity Exchange ended almost flat.

Regional equities - Dec 7 (Reuters) - The Philippines stock market hit an all-time high on Friday, while others ended mixed as investors waited for directions from U.S. non-farm payrolls data due later in the day.

The Philippines the region's best performer this year, gained 0.5 percent to close at a record peak of 5,794.20, after it hit a fresh intraday all-time high of 5,797.93, led by 2.4 percent gain in conglomerate SM Investments Corp.

Singapore gained 0.9 percent to a two-month high, led by banks with a 2.2 percent rise in United Overseas Bank Ltd , while Malaysia edged up 0.1 percent to a two-week closing high, led by consumer stocks.

Bucking the trend, Thailand fell 0.4 percent, with energy shares dragging the overall index as top oil firm PTT Pcl and PTT Exploration and Production Pcl  lost 0.6 percent and 1.6 percent, respectively.

Vietnam ended 0.5 percent lower, while Indonesia ended a tad weaker with a 0.04 percent fall with a $48 million net foreign outflow.

Trader's highlight

DJI - NEW YORK, Dec 5 (Reuters) - A volatile trading session ended with U.S. stocks mostly higher on Wednesday, even as Apple, the most valuable company in the United States, suffered its worst day of losses in almost four years.

In a strange occurrence, Apple accounted for the entirety of the Nasdaq 100's  fall of 1.1 percent, while the Dow industrials - which do not include Apple as a component - enjoyed the best day since Nov. 28.

With the drop, Apple shed nearly $35 billion in market capitalization, its biggest one-day market-cap loss ever. The company's market value, or market capitalization, now stands at $506.85 billion.

"Today's move is because of index weightings, with the Nasdaq down because of Apple's decline," said Rex Macey, chief investment officer of Wilmington Trust in Atlanta. "The S&P is up because Apple isn't as big a weight in that index, and the Dow is up even more because it isn't there at all."

The broad market seesawed, with the S&P 500 dropping into negative territory before it rebounded off the 1,400 level, seen as a key support point over the past two weeks. Investors cited comments from President Barack Obama suggesting a potential near-term resolution to the "fiscal cliff" wrangling in Washington as a catalyst for the rebound.

The Dow Jones industrial average  rose 82.71 points, or 0.64 percent, to 13,034.49 at the close. The Standard & Poor's 500 Index gained 2.23 points, or 0.16 percent, to 1,409.28. But the Nasdaq Composite Index fell 22.99 points, or 0.77 percent, to end at 2,973.70.

Apple, the largest U.S. company by market capitalization and a big weight in both the S&P 500 and the Nasdaq, fell 6.4 percent to $538.79. Apple is down more than 20 percent from an all-time high reached in late September, putting the stock into bear market territory.

Banking shares were led higher by a 6.3 percent jump in Citigroup to $36.46 after the company said it would cut 4 percent of its workforce. The S&P financial sector index climbed 1.3 percent, and Bank of America hit a 52-week high of $10.55 before pulling back slightly. The stock, a Dow component, ended at $10.46, up 5.7 percent for the day.

Cyclical sectors, which are tied to the pace of economic growth, rallied on optimism about progress on a solution to avoid the fiscal cliff. An S&P index of industrial stocks rose 1.1 percent, buoyed by Caterpillar Inc up 2.2 percent at $86.05, while an S&P index of energy shares climbed 0.7 percent. The Dow Jones Transportation Average gained 0.9 percent, with CSX Corp jumping 2.7 percent to $20.16

Still, Apple struggled throughout the session. Market participants cited a host of reasons for the drop in the iPad maker's stock, including a consultant's report about the company losing share in the tablet market and reports that margin requirements had been raised by at least one clearing firm, as well as year-end tax selling ahead of a possible rise in capital-gains tax rates next year. 

On the Washington front, Obama told the Business Roundtable, a group of chief executives, on Wednesday that a fiscal cliff deal was possible "in about a week" if Republicans acknowledged the need to raise taxes on the wealthiest Americans.

Equities have struggled to gain ground recently because of concerns over the fiscal cliff - a series of mandatory spending cuts and tax increases effective in early January that could push the U.S. economy into recession next year. Recently equities have moved on any whiffs of sentiment from Washington in headlines about negotiations.

"Obama's comments generated a lot of optimism, but to the extent the market believes them, that's how much we're setting ourselves up for a decline if that deadline passes with no progress," said Macey, who helps oversee about $20 billion in assets.

In an interview on CNBC after the market closed, U.S. Treasury Secretary Tim Geithner said that uncertainty over the fiscal cliff was standing in the way of stronger economic growth, and that there was no prospect for an agreement if tax rates didn't rise on the wealthiest taxpayers.

NYMEX - NEW YORK, Dec 5 (Reuters) - U.S. crude futures fell on Wednesday as disappointing economic data from the euro zone and the United States raised concerns about demand for oil, while rising inventories pushed gasoline futures nearly 2 percent lower.

U.S. crude oil inventories fell sharply last week, a report from the U.S. Energy Information Administration said on Wednesday, much more than expected, while gasoline and distillate stockpiles rose more than expected.

CBOT Soybean - Soybean futures on the Chicago Board of Trade hit a near one-month peak and settled higher for a third straight session on a mix of technical buying and talk of renewed export demand from China, traders said.

·                January soyoil  rose above its 50-day moving average and set a one-month high at 51.04 cents per lb, before settling at 51.00 cents. January soymeal  set a near one-month top.

·                Traders cited unconfirmed talk that China may have bought up to six cargoes of U.S. soybeans off the Pacific Northwest this week.

·                Continued support from worries about excessively wet weather in crop areas of Argentina, which has slowed corn and soybean planting. Commodity Weather Group said forecasts looked wetter for the middle of next week, and more showers were likely in the 11- to 15-day period.

·                Paraguay's Senate approved a bill on Tuesday that would impose a 10 percent tax on soybean exports, despite objections from farmers in the world's No. 4 supplier of the oilseed.

·                U.S. cash soy markets remain firm, propped up by strong crush margins. Cash bids for soybeans shipped by barge to the U.S. Gulf Coast firmed early Wednesday on exporter demand and slow barge movement due to low water on the Mississippi River.

·                Background support from Statistics Canada reporting Canadian canola production at 13.3 million tonnes, down 8.9 percent from a year ago and below an average of trade estimates.

FCPO - KUALA LUMPUR, Dec 5 (Reuters) - Malaysian palm oil futures slipped 0.3 percent on Wednesday as expectations of record stocks in November weighed on sentiment, although traders are looking at higher exports and slowing output this month.

Traders are counting on demand to kick in as forward palm oil futures are at a discount to the 3-month benchmark on high stocks. A Reuters survey showed palm oil stocks in November probably grew 2.8 percent to a record 2.58 million tonnes.

More orders are expected from China, the world's No.2 edible oil buyer, before the government imposes stricter quality rules on palm oil cargoes from Jan. 2013.

Higher exports could support palm oil futures that have lost nearly 28 percent this year in their worst annual performance since the 2008 financial crisis.

"The market dropped a little on stocks, the bottom is nearing. We can't be going any lower as exports are going higher in December and production will come off," said a trader with a foreign commodities brokerage.

The benchmark February contract on the Bursa Malaysia Derivatives Exchange settled down 0.3 percent at 2,287 ringgit ($750) per tonne after treading higher in the morning session. The previous day, the contract fell to 2,279, its lowest since Nov. 12.

Total traded volumes rose to 37,113 lots of 25 tonnes each, compared to the usual 25,000 lots.

Reuters market analyst Wang Tao kept a bearish target of 2,200 ringgit per tonne as there was no indication on a possible bullish reversal on this trend.

Malaysian crude palm oil shipments are expected to rise in the next few weeks as planters rush to exhaust their annual tax-free export quota allocation totalling 3.5 million tonnes and which is set to expire at the end of December.

While this may support prices, for now, palm oil is treading lower compared to other commodity markets.

Brent crude edged above $110 a barrel on Wednesday, after two sessions of losses, as investors switched their focus from the United States fiscal crisis to hopes that growth in top energy consumer China to pick up sooner than expected.

In palm oil's competing markets, U.S. soyoil for December delivery edged up 0.5 percent as traders grew concerned that unfriendly crop weather would cut global soy supplies.

The most active May 2013 soybean oil contract on the Dalian Commodity Exchange also rose 0.7 percent.

Regional Equities - Dec 5 (Reuters) - Southeast Asian stock markets mostly ended higher on Wednesday, led by banks on strong volumes on hopes China would maintain its fine-tuning of policies next year to ensure stable economic growth.

However, the optimism was slightly offset by concerns over U.S. lawmakers' ability to break a budget impasse before year-end to avert a possible economic slump.

Singapore added 0.5 percent, led by banking stocks with 1.9 percent rise in United Overseas Bank Ltd and 0.8 percent gain in DBS Group Holdings Ltd

Indonesia  despite suffering a $57.7 million foreign outflow, added 0.4 percent, recovering from a two-month low, due to strong local buying. Bank Central Asia Tbk PT  gained 0.57 percent, while Bank Mandiri Persero Tbk PT  rose 0.61 percent.

Malaysia  added 0.4 percent with $21.23 million net foreign inflow and Vietnam rose 0.9 percent to a near three-week high.

The Philippines , the region's best performer this year, bucked the trend with snapping a seven-session gaining streak and fell 0.3 percent from its record high.

RTRS - Malaysia Nov palm oil stocks likely hit record high

KUALA LUMPUR, Dec 5 (Reuters) - Malaysian palm oil stocks likely hit another record high in November as exports failed to keep pace with output, a Reuters survey of five plantation firms showed on Wednesday, potentially weighing on prices.

Inventory in the world's No.2 palm oil producer may have grown 2.8 percent to 2.58 million tonnes from a previous record of 2.51 million tonnes seen in October as output stayed high despite a slight weakening in yields, according to the poll.

Malaysia's palm oil output in November may have dropped 5 percent to 1.84 million tonnes from a month ago as heavy rains disrupted some harvesting and yields tapered off after months of strong growth.

But that was still enough to offset exports at 1.70 million tonnes, down 3.3 percent from a month ago as there was a lack of vessels to transport the tropical oil to big consumers in India, China and Europe.

Imports of crude palm oil from top producer Indonesia likely surged more than two fold to 50,000 tonnes in November, from 19,102 tonnes the month before, as Malaysian refiners took advantage of lower Indonesian prices to stock up.

FACTORS TO WATCH:

In December, Malaysian palm oil firms holding tax free export quota for the crude grade will be rushing to push out shipments before the allocations expire in end-December.

That means Malaysian stocks are unlikely to hit 3 million tonnes by end-2012 as forecast by industry analyst Dorab Mistry.

It also means there could be a stock drawdown in December, the first monthly drop since June this year, giving much needed support to palm oil futures that are set to post their weakest yearly performance since the financial crisis in 2008.

The benchmark February contract on the Bursa Malaysia Derivatives Exchange has shed about 27 percent so far this year, while in 2008 it dropped 44 percent. 

Malaysia this month is also set to announce its crude palm oil export tax for January 2013, expected to be lower than the current 23 percent duty. Lower export taxes for the grade are likely to boost shipments, further eating into stocks.

Another factor to watch would be Chinese buying.

Buyers from China, the world's second largest importer of palm oil, are likely to snap up refined palm oil cargoes before stricter quality measures set by Beijing take effect on Jan. 1.

Malaysian output is expected to decline further as seasonally heavy rains towards the end of the year disrupt harvesting and trigger floods that complicate logistics.

Trader's highlight

DJI - NEW YORK, Dec 4 (Reuters) - U.S. stocks finished slightly lower in a quiet session on Tuesday as the back-and-forth wrangling over the "fiscal cliff" gave investors little reason to act.

Trading volume was light as legislators continue to negotiate a deal to avoid a $600 billion package of tax hikes and federal spending cuts that would begin Jan. 1 and could push the economy into recession.

Just 5.86 billion shares changed hands on the New York Stock Exchange, the Nasdaq and the NYSE MKT, below the year's daily average of 6.48 billion shares.

Optimism for progress was dented after remarks by President Barack Obama, who rejected a Republican proposal to resolve the crisis as "out of balance" and said any deal must include a rise in income tax rates on the wealthiest Americans.

"People don't know if what's going on is political posturing or real negotiations that represent progress," said Bernard Baumohl, managing director and chief global economist at the Economic Outlook Group in Princeton, New Jersey.

Expectations of higher taxes on dividends beginning in 2013 have pushed many companies to pay special dividends this year or advance their next payback to investors. Coachbecame the latest to move up the date of its next dividend payment, and the news lifted shares of the upscale leather-goods maker earlier in the session. By the close, though, Coach was down 1.2 percent at $57.52. 

One of the S&P 500's top sectors for the day was health care , considered a defensive group.

The Dow Jones industrial average fell 13.82 points, or 0.11 percent, to 12,951.78 at the close. The Standard & Poor's 500 Index dipped 2.41 points, or 0.17 percent, to 1,407.05. The Nasdaq Composite Index  shed 5.51 points, or 0.18 percent, to close at 2,996.69.

The market has been sensitive to rhetoric from Washington, as a failure to reach an agreement could send the U.S. economy back into recession. Still, many expect a resolution to be found, which could extend the S&P 500's rally of 12 percent so far this year.

Differences within the Republican Party came to the fore on Tuesday as one senator opposed to raising taxes lashed out at Republican House Speaker John Boehner for proposing to increase revenue by closing some tax loopholes.

Congressional Republicans recently proposed steep spending cuts to bring down the budget deficit, but gave no ground on Obama's call to raise tax rates on the rich. The proposal was quickly dismissed by the White House.

"We're on hold trying to figure it out, but investors are stressed since they have to make decisions soon about how to proceed with their investments if taxes are indeed going up. We could see a real pick-up in volume over the next week or so," Baumohl said.

NYMEX - U.S. crude futures nursed losses near $88.50 per barrel, as investors fretted about the health of the U.S. economy and lack of progress in fiscal deficit negotiations, but bubbling tensions in the Middle East supported prices.

CBOT Soybean - Spot soybean futures on the Chicago Board of Trade rose for a second day as a late technical rally offset early pressure from favorable crop weather in Brazil, traders said. 

·         January soybeans rallied in the closing minutes of trade after holding support near the 20-day moving average of  $14.36-3/4. Soymeal also rallied to close higher while soyoil  pared losses.

·          Analysts at FCStone do Brasil reduced their forecast for Brazil's 2012/13 soybean crop to 80.01 million tonnes, down from the firm's September estimate of 81.98 million, citing lower yield expectations due to dryness in the southern producing regions. 

·         Informa Economics raised its forecast of Brazil's 2012/13 soybean crop to 81.4 million tonnes, from 81.25 million previously and above USDA's November estimate of 81 million.

·          Informa lowered its forecast for Argentina's soybean harvest to 58.4 million tonnes, from 59.5 million a month ago, citing a reduction in expected plantings.

·         In Brazil, storms were forecast late this week for drier sections of central and southern soybean areas, easing concerns  about dryness, the Commodity Weather Group said. Excessive rains  remain a problem for Argentina.

·        Basis bids for soybeans shipped by barge to the U.S. Gulf Coast were mostly steady early on Tuesday, with nearby values at a premium to deferred amid solid demand from exporters and tight   supplies in the marketing pipeline, traders said.

·         The United States may be facing tight domestic soyoil supplies because of the current export surge of U.S. soyoil, oilseeds analysts Oil World said. Unusually large sales of U.S. soyoil in the second half of November mean the known U.S. soyoil export commitments for the Oct. 2012/Sept. 2013 season have now  reached at least 611,000 tonnes, it said. 

·         Malaysian palm oil futures fell to a three-week low as investors fretted over the prospects of another month of record stocks in the world's No.2 producer.

FCPO - KUALA LUMPUR, Dec 4 (Reuters) - Malaysian palm oil futures fell to its lowest in more than three weeks on Tuesday as investors fret over the prospects of another month of record stocks in the world's No.2 producer.

Spot December contract was trading at a 8 percent discount to the benchmark February futures, signalling oversupply and keeping investors on edge although seasonally slowing output and Chinese demand should curb stockpiles.

Record high stocks in Indonesia and Malaysia will see palm oil futures post their worst annual performance since the financial crisis in 2008. Palm oil prices have lost nearly 28 percent so far this year also on the deepening euro zone debt crisis affecting global economic growth.

"There is plentiful stock around -- that's the reason why the market is still technically weak. The local front is bearish," said a trader with a foreign commodities brokerage.

"Exports are holding quite well, the demand is still strong. But unless you see a draw down in inventory, the market will be under pressure," he added.

The benchmark February contract on the Bursa Malaysia Derivatives Exchange fell as much as 2,279 ringgit per tonne, the lowest since Nov. 12, before closing at 2,298 ringgit ($756) per tonne.

Total traded volumes surged to 42,981 lots of 25 tonnes each, nearly doubling from the usual 25,000 lots.

Technicals showed that palm oil would revisit its Nov. 12 low of 2,220 ringgit per tonne, said Reuters market analyst Wang Tao.

Malaysian crude palm oil exports are expected to rise in the next few weeks thanks to stronger demand from China ahead of Lunar New Year celebrations in February, and stricter import rules next year.

"We have assumed crude palm oil exports to increase by 5 percent to 1.85 million tonnes in November as Chinese traders are expected to stock up," Kenanga Investment Bank analyst Alan Lim said in a note to clients.

Kenanga expects inventory levels to "remain close to the very high level of 2.5 million tonnes" and keep crude palm oil prices below 2,500 ringgit in the near term.

Weak manufacturing data from the United States renewed concerns of slowing demand from the world's biggest oil consumer, offsetting optimistic factory data issued by China a day earlier.

Regional equities - Dec 4 (Reuters) - Thailand's stock market edged down on Tuesday from a 16-1/2-year high while others closed mixed with Philippines hitting a record close for a seventh session as confusing signals on the global economy weighed on the region's risky assets.

An unexpected contraction in the United States' November manufacturing activity, which hit a three-year low, along with stalled budget negotiations dented investor sentiment, though Greece's bond buy-back plan helped to boost appetite.

The Thai benchmark index fell 0.2 percent from its highest since April 1996, led by a 2.2 percent fall in the country's top oil and gas explorer, PTT Exploration and Production Pcl , after the company announced plans on Friday to raise $3 billion in a share offer.

Singapore ended a tad weaker, down 0.1 percent. Indonesia lost 0.8 percent to close at a two-month low, with $56 million in foreign outflows. Banks led the fall, with Bank Central Asia (BCA) dropping 7.9 percent.

The Philippine benchmark index ended at 5,706.28, above Monday's record of 5,672.70, on strong trading volumes, with conglomerate Aboitiz Equity Ventures Inc  gaining 2.5 percent.

Vietnam rose 0.8 percent, while Malaysia ended steady.

RTRS - Soy basis bids jump 20 cts in Cincinnati on strong demand

Nov 30 (Reuters) - Soybean spot basis bids jumped 20 cents per bushel in Cincinnati, Ohio early on Friday, supported by tightening supplies and strong demand for the oilseed, dealers said.

Draft restrictions beginning next week on the Mississippi River south of St. Louis are expected to slow traffic on the waterway and lead to more demand for soybeans on the Ohio River near Cincinnati, the dealers said.

Trader's highlight

DJI - NEW YORK, Nov 30 (Reuters) - The S&P 500 wrapped up its fifth positive month in the last six on Friday, although it ended the day flat as politicians remain at odds about how to avoid the so-called fiscal cliff.

Trading has been choppy in the last two weeks as investors react to statements from policymakers on the state of discussions on how to avert a series of tax hikes and spending cuts that could pull the economy back into recession.

The S&P 500 was up 0.29 percent in November even as it suffered a slide of more than 6 percent from the month's high to its low.

"Given the 'on again, off again' fiscal cliff (negotiations), it’s rather surprising how resilient this market has been," said David Rolfe, chief investment officer at St. Louis-based Wedgewood Partners.

"Between now and the end of the year, there's going to be an information vacuum outside the fiscal cliff, and I believe that resiliency will be tested."

On Friday, President Barack Obama accused a "handful of Republicans" in the U.S. House of Representatives of holding up legislation to extend tax cuts for middle-class Americans in order to try to preserve them for the wealthy.

The Dow Jones industrial average ose 3.76 points, or 0.03 percent, to 13,025.58 at the close. The S&P 500 gained a mere 0.23 of a point, or 0.02 percent, to finish at 1,416.18. But the Nasdaq Composite Index .dipped 1.79 points, or 0.06 percent, to end at 3,010.24.

For the month of November, the S&P 500 rose 0.29 percent, its smallest monthly variation since March 2011. The Dow fell 0.5 percent and the Nasdaq gained 1.1 percent.

For the week, though, all three major U.S. stock indexes advanced, with the Dow up 0.1 percent, the S&P 500 up 0.5 percent and the Nasdaq up 1.5 percent.

U.S. consumer spending fell in October for the first time in five months and income growth stalled, leading some economists to cut already weak estimates of fourth-quarter economic growth.

Slightly more than 7 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, more than the daily average so far this year of about 6.48 billion shares and the largest in two weeks.

On the NYSE, roughly six issues rose for every five that fell, while on Nasdaq, the ratio was nearly 1 to 1.

NYMEX - SINGAPORE, Nov 30 (Reuters) - U.S. crude dropped below $88 per barrel on Friday as key budget talks to avert a looming fiscal disaster in the United States appeared to be stalling, denting the outlook for oil demand from the world's top consumer.

CBOT Soybean - Nov 30 (Reuters) - Soybean futures on the Chicago Board of Trade fell 0.6 percent on Friday on long liquidation and profit-taking at the end of the month, along with forecasts for welcome rains in crop areas of Brazil, traders said.

• Soymeal and soyoil also fell, following soybeans.

• CBOT reported no soymeal deliveries on first notice day against CBOT December futures while soyoil deliveries totaled 2,200 contracts, both within trade expectations.

• Beneficial rains are expected in Brazil's southern grain belt over the weekend, forecaster Somar said, boosting crop prospects after the main corn and soy region received far less rain than usual in November. "December will start with more concentrated rains over Brazil's center and south," Somar said in a daily report.

• Talk that China was buying soybeans from Brazil instead of the United States added pressure.

• Spot CBOT soybeans rose 1.5 percent for the week, the second straight weekly gain since falling to a five-month low. However, soybeans posted their third straight monthly loss, the longest slump in a year and a half.

• Spot soymeal and soyoil futures each posted a second straight weekly advance, but ended lower for the month.

• Planting delays in Argentina due to wet weather underpinned the market. Argentina's farmers have planted 58 percent of the country's soybean crop, compared with 66 percent a year ago, the country's Agriculture Ministry said in a weekly report.

• Firm U.S. cash soy markets lent support. Cash bids surged Friday in Cincinnati, on the Ohio River, where soybeans are in demand because draft restrictions on barges and tugs on part of the Mississippi River are expected to slow traffic on that waterway.

• Cargill Inc's barge company Cargo Carriers said it was limiting drafts on northbound barges on the Mississippi River to 8 feet due to low water and will soon impose similar curbs on southbound vessels.

• Malaysian palm oil futures edged lower and posted a third straight monthly loss as top analysts warned that record high stocks would weigh on prices in the new year. 

FCPO - SINGAPORE, Nov 30 (Reuters) - Malaysian palm oil futures edged lower on Friday and posted their third straight monthly loss, with investors staying cautious after top analysts warned that record high stocks would weigh on prices in the new year.

But losses were limited by a surprise increase in Malaysian exports in November from a month ago, easing concerns that record high stocks would climb further for the month.

Exports rose to 1.66 million tonnes in November from October's 1.61 million, cargo surveyor Intertek Testing Services said on Friday. Another surveyor, Societe Generale de Surveillance, reported November shipments at 1.65 million tonnes, up from last month's 1.57 million. 

"The export surprise is likely to limit the downside because end-stocks are going to be flat to slightly lower for November. The market is also taking some time to digest the analysts' comments," said a dealer with a foreign commodities brokerage in Malaysia.

The benchmark February contract on the Bursa Malaysia Derivatives Exchange closed down 0.7 percent at 2,370 ringgit ($780) per tonne, off an earlier low at 2,359 ringgit, a level not seen since Nov. 14. For the month, prices posted a 5 percent loss.

Total traded volumes were thin at 20,776 lots of 25 tonnes each compared to the usual 25,000, underlining investor caution.

Technicals showed palm oil's target at 2,353 ringgit per tonne remained unchanged, and a break below will lead to a further drop to 2,288 ringgit, said Reuters market analyst Wang Tao.

Palm oil prices need to trade at the 2,200 ringgit level for the next 4-6 weeks to attract demand that could reduce and clear stocks, top industry analyst Dorab Mistry said at an Indonesian industry meeting on Friday. 

Leading analyst James Fry of LMC International raised issues such as uncertainty ahead of Chinese, and possibly Indian, import rules, although Thomas Mielke of Oil World provided a more upbeat forecast for palm oil prices.

Analysts and traders surveyed by Reuters at the conference saw 2013 average palm oil prices at 2,500 ringgit, down 17.1 percent from 3,016 ringgit calculated so far for this year. 

Regional equities - BANGKOK, Nov 30 (Reuters) - Thai shares hit a 16-1/2 year closing high on Friday, racking up gains for a sixth straight month, as institutional investors bought big caps while most other Southeast Asian stock markets edged up on positive global market sentiment.

The Thai SET index ended at 1,324.04, the highest close since May 1996, posting a 1.8 percent gain for the month, helped by buying from domestic institutions for retirement mutual funds (RMF) and long-term equity funds (LTF) with offer tax breaks.

PTTEP's capital raising, announced earlier on the day, eased concerns about the success of the plan, removing a key overhang on the company. 

Singapore's Straits Times Index finished near an eight-week high of 3,069.95, rising 1 percent on the month. Malaysia  rose for a third session, up 0.2 percent on the day, but was down 3.7 percent on the month, the region's worst.

Bucking the trend, Indonesia fell to a near eight-week-low, down 1.7 percent on the month. Among losers, plantation stock PT Astra Agro Lestari Tbk dropped 3 percent amid concerns about rising wage costs.

The Philippine stock market was shut on Friday. It was up 4 percent on the month, the region's best performer.

RTRS- Indonesia's SMART sees 2013 palm oil output rising by up to 10 pct

NUSA DUA, Indonesia, Nov 30 (Reuters) - Indonesia's biggest palm oil producer SMART SMAR.JK expects its 2013 output to rise by as much as 10 percent on the year to around 2.4 million tonnes as more plantations mature, a company executive said on Friday.

SMART, or PT Sinar Mas Agro Resources & Technology, is likely to produce about 2.2 million tonnes of palm oil this year, Susanto, chief executive of the company's West Kalimantan operations, told Reuters.

"For next year, hopefully there will be an increase of 5-10 percent," Susanto said on the sidelines of the 8th Annual Indonesian Palm Oil Conference.

"We have new areas and more mature areas, especially in Central Kalimantan," he added.

SMART runs the Indonesia palm oil operations of its Singapore-listed parent Golden Agri-Resources GAGR.SI.

The company had earlier estimated output to rise by about 8 percent a year over the next five years.

Susanto manages 30,000 hectares of palm plantations in West Kalimantan, producing 40,000-45,000 tonnes this year. He said that volume is likely to rise 10-15 percent in 2013.

Malaysia and Indonesia account for about 90 percent of the world's annual palm oil production of about 45 million tonnes.

This year, Europe's financial woes coupled with an economic slowdown in top buyers India and China, have cut demand for the edible oil and pushed inventories in second-largest producer Malaysia to record highs.

The rising stocks have shaved a quarter off the value of palm oil futures FCPOc3 this year, and many analysts at the conference see little let-up in early 2013.

INFRASTRUCTURE UPGRADE

Palm oil stocks in Indonesia, the world's top producer, are more than 4 million tonnes at present and capacity is between 5-6 million tonnes, said Joelianto, trading director at SMART.

To offset falling demand, government officials in Indonesia have called on the palm industry to build bigger storage capacity, and increase domestic use of biofuels.

Joelianto, however, said the biggest challenge to the industry in Indonesia was the lack of bigger waterways and new ports to quickly ship out palm oil and ease high stock levels.

"The government has not done anything concrete yet," said Joelianto, adding that many palm firms were now building their own jetties. "We need more infrastructure, especially deeper ports that can handle bigger volumes."

Earlier this month, the Indonesian Vegetable Oil Association said modernising Indonesia's state-owned ports was crucial to handle the rapidly expanding refined palm oil output.

Crude palm oil shipments were also affected by dry weather conditions and falling water levels on a river in West Kalimantan in June.

"If Indonesia's palm oil (output) is growing by 2-2.5 million tonnes per year, we must have ports that can handle that kind of volume," Joelianto said.

RTRS- Palm oil prices set for a volatile 2013 in oversupplied market

NUSA DUA, Indonesia Nov 30 (Reuters) - Palm oil prices are set to start 2013 on a sour note as record high stocks and rising output in Southeast Asia overwhelm already weak demand, while regulatory uncertainty in top buyers India and China adds to the gloomy outlook.

Analysts and traders at an industry meeting in Bali expect the world's biggest palm oil producers, Indonesia and Malaysia, to boost supplies next year, barring any weather disruptions.

An increase in the amount of edible oil on the global market is likely to further weigh on benchmark Malaysian futures 0#FCPO:, which are set to post their worst annual performance this year since the 2008 financial crisis. The profits of big palm oil firms, such as Singapore's Wilmar WLIL.SI and Malaysia's Sime Darby SIME.KL, are also likely to be eroded.

While lower prices will attract food demand, appetite could be curbed by possible regulations by China and India. India, the world's biggest buyer, may set higher taxes on edible oil imports to protect oilseed farmers, and China launches strict quality curbs for imports on Jan. 1.

"I am steadily coming to the conclusion that the days of supernormal profits in palm oil cultivation are coming to a close," influential palm oil market analyst Dorab Mistry said.

"Overall I expect vegetable oil prices to remain rangebound in the first half of the year and to begin a major bear market in the second half," he told the conference.

Mistry, who handles the edible oil trading portfolio for India's Godrej Industries, forecast palm oil to "break down" if India hiked import taxes.

Otherwise, palm oil futures will trade between 2,300 and 2,600 ringgit between now and February 2013, as high stocks more than make up for strong Asian demand growth, he said.

Other analysts and traders surveyed by Reuters at the meet also saw palm oil prices averaging 2,500 ringgit next year, or 17 percent off this year's average of 3,016 ringgit.

SOAKING UP MORE SUPPLY

Palm oil is now trading at above 2,350 ringgit, sharply lower than year-ago levels of above 3,000 ringgit.

Prices next year will be affected by the performance of benchmark Brent crude oil and the Chinese quality requirements, said James Fry, chairman of consultancy LMC International.

"There are three possible outcomes," he said, referring to the Chinese curbs. "More crude palm oil or crude olein imports for refining, more polishing of RBD olein imports and maybe more fractionation of RBD palm oil imports."

Higher crude prices could boost the appeal of Asian palm oil, and shrink Malaysian inventories to 1.8 million tonnes by June 2013 from a record 2.5 million in October, Fry said.

Palm futures are unlikely to change too much from current levels if Brent futures fall to around $90 a barrel, he added. If Brent stays at around $110, palm oil could hit 2,950 ringgit.

Palm oil demand has fallen this year, crimped by financial woes in Europe and economic slowdown in China.

Next year, producers will also have to contend with even higher supplies from both Malaysia and Indonesia, which makes for a challenging market unless the global economy picks up.

Mistry, in his first estimate of Indonesian output, forecast production to rise to 29.5 million to 30 million tonnes in 2013 from a projected 27.5 million this year, exceeding estimates by the official industry association GAPKI.

He also forecast Malaysian output growing at a slower pace, to 19 million tonnes next year, from an estimated 18.4 million this year.

Not all analysts, however, rue the increase in supply.

Thomas Mielke, editor of Hamburg-based research house Oil World, believes the increase in palm oil supply will help fill the gap left by a decline in soybean production in the Americas.

He forecast crude palm oil prices, now trading at a record $350 discount to soybean oil, would start rising as more customers make the switch.

"Global soybean supplies are tight," he said. "I expect that palm oil futures will appreciate to 3,100 to 3,200 Malaysian ringgit sometime in March, April, May 2013."

Indonesia's rapidly expanding edible oil processing industry is also likely to help soak up the extra output.

Indonesia's Palm Oil Board forecast total palm oil consumption to rise to about 7.5 million tonnes next year, from an expected 7 million this year.

Jakarta is also considering increasing tax incentives to encourage palm oil companies to set up refineries, a government adviser said, as it develops its downstream sector to compete with Malaysia and draw in more export earnings.

RTRS-Palm oil slips on investor caution, set for third monthly loss

SINGAPORE, Nov 30 (Reuters) - Malaysian palm oil futures edged lower on Friday and were heading for their third straight monthly loss, with investors staying cautious after top analysts warned that record high stocks will weigh on prices in the new year.

But losses were limited by a surprise increase in Malaysian exports in November to 1.66 million tonnes from 1.6 million tonnes seen in October, easing concerns that record high stocks would climb further for the month.

 

"The export surprise is likely to limit the downside because end-stocks are going to be flat to slightly lower for November. The market is also taking some time to digest the analysts' comments," said a dealer with a foreign commodities brokerage in Malaysia.

By the midday break, the benchmark February contract FCPOc3 on the Bursa Malaysia Derivatives Exchange fell 0.6 percent to 2,372 ringgit ($780) per tonne. For the month, prices were on track for a 5 percent loss.

Total traded volumes were thin at 8,342 lots of 25 tonnes each compared to the usual 12,500 lots, highlighting investor caution.

Technicals showed palm oil's target at 2,353 ringgit per tonne remained unchanged, and a break below will lead to a further drop to 2,288 ringgit, said Reuters market analyst Wang Tao.

Palm oil prices need to trade at the 2,200 ringgit level for the next 4-6 weeks to attract demand that could reduce and clear stocks, said top industry analyst Dorab Mistry at the Indonesian Palm Oil Association conference on Friday.

Leading analyst James Fry of LMC International raised issues such as uncertainty ahead of Chinese and possibly Indian import rules, although Thomas Mielke of Oil World provided a more upbeat forecast for palm oil prices.

Analysts and traders surveyed by Reuters at the conference saw 2013 average palm oil prices at 2,500 ringgit, down 17.1 percent from 3,016 ringgit calculated so far for this year.

 

In related markets, Brent crude slipped towards $110 a barrel on Friday as critical U.S. budget talks to avert a looming fiscal disaster appeared to have stalled, denting the outlook for oil demand from the world's biggest consumer.

In other vegetable oil markets, U.S. soyoil for December delivery BOZ2 lost 0.1 percent in early Asian trade. The most-active May 2013 soybean oil contract DBYcv1 on the Dalian Commodity Exchange edged up 0.2 percent.

RTRS- Analysts call the palm oil market for 2013

NUSA DUA, Indonesia Nov 30 (Reuters) - Following are comments by key analysts at a palm oil industry conference in the Indonesian island of Bali:

THOMAS MIELKE, EDITOR, OIL WORLD

PALM OIL'S DISCOUNT TO SOYOIL

"Palm oil prices are undervalued, I consider the huge discount of $350 to soyoil as not sustainable. It is a matter of time with current surplus in palm oil getting disposed."

SOUTH AMERICAN CROPS

"South American crops are going to be key for prices. September to February 2012/13, global crushing of ten oilseed varieties forecast to suffer an unprecedented drop of 5 million tonnes."

"In contrast, crushing jumped8.4 million tonnes a year ago and 5.8 million tonnes per annum on the average of the past 14 years. The world needs more palm oil to offset these reductions."

"Soybean crushing could be compensated by higher palm oil supplies."

"September/February 2012/13 world soybean supplies down 24 million tonnes. Little rationing in world soybean consumption so far."

RTRS- CIMB upgrades S'pore-listed palm oil firms

CIMB Research upgraded Singapore-listed palm oil plantation firms to 'overweight' from 'trading buy' but downgraded Indonesia-listed peers to 'neutral' from 'overweight'.

Singapore-listed companies will be "less impacted by the minimum wage increase (in Indonesia) due to their geographically-diversified estates, as well as have better prospects in light of their exposure to the domestic cooking oil sector", CIMB said.

It lowered its average crude palm oil price forecasts by 7-9 percent for 2012-2014 to reflect waning risks from El Nino.

The brokerage upgraded Singapore's Wilmar International Ltd WLIL.SI to 'outperform' from 'neutral', and raised its target price to S$3.90 from S$3.52, citing a recovery in earnings due to better crushing margins and higher sales volumes in 2013.

By 0147 GMT, Wilmar shares were up 0.6 percent at S$3.21, but are the biggest underperformer in the sector, falling 36 percent so far this year against the Straits Times Index's .FTSTI 16 percent gain.

Golden Agri-Resources Ltd GAGR.SI was also upgraded to 'outperform' from 'trading buy', as CIMB expects its shares to ride on the recovery in crude palm oil prices in the first half of the year.

CIMB downgraded Indonesia's Astra Agro Lestari AALI.JK to 'neutral' from outperform and cut target price to 23,300 rupiah from 27,400 rupiah, due to rising cost pressures.

Trader's Highlight

DJI- NEW YORK, Nov 28 (Reuters) - U.S. stocks rallied on Wednesday after comments from House Speaker John Boehner, the top Republican in Congress, on a possible compromise to avoid the "fiscal cliff" turned the market around.

The S&P 500 rebounded from a 1 percent decline, gaining more than 20 points from its low after Boehner, an Ohio Republican, said he was optimistic that a budget deal to avoid big spending cuts and tax hikes can be worked out. President Barack Obama added to the good feelings, saying he hoped to get a deal done in the next four weeks.

 

"The fiscal cliff is dominating the discussion, and short term, we’re a little bit too optimistic on it being fixed right away," said John Manley, chief equity strategist for Wells Fargo Advantage Funds in New York.

In expectation of higher dividend tax rates in 2013, companies have been shifting dividends or announcing special payouts to shareholders.

 

The market's move marked the second straight day where a leading legislator dictated trading action. On Tuesday, stocks fell on pessimistic remarks from Senate Majority Leader Harry Reid, a Democrat from Nevada.

The market has been swinging for weeks now on headlines from Washington, with Wednesday's gyrations once again highlighting the importance that Wall Street is giving to finding a solution to avoid the series of tax increases and spending cuts that could push the U.S. economy into recession.

The Dow Jones industrial average .DJI rose 106.98 points, or 0.83 percent, to 12,985.11 at the close. The S&P 500 .SPX gained 10.99 points, or 0.79 percent, to 1,409.93. The Nasdaq Composite .IXIC added 23.99 points, or 0.81 percent, to close at 2,991.78.

The S&P 500 bounced off a strong support area near 1,385 that includes both its 200- and 14-day moving averages. It closed above 1,400 for the third session in four - an optimistic sign for stock bulls.

The S&P retail index .SPXRT gained 1.4 percent.

 

Nearly 6.1 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, below the daily average so far this year of about 6.48 billion shares.

On the NYSE, roughly seven stocks rose for every three that fell, and on Nasdaq, five issues rose for every three that fell.

NYMEX- NEW YORK, Nov 28 (Reuters) - U.S. crude futures fell a third straight session on Wednesday as concerns about fuel demand outweighed optimism about a potential deal to resolve the U.S. budget crisis.

U.S. January crude CLc1 fell 69 cents, or 0.79 percent, to settle at $86.49 a barrel, having traded from $85.36 to $87.34.

CBOT SOYBEAN- Soybean futures on the Chicago Board of Trade fell 0.2 percent, stalling a three-day rally as traders booked profits after the spot January contract reached a 2-1/2 week high.

* USDA confirmed sales of 290,000 tonnes of U.S. soybeans to China for delivery in 2012/13.

 

• Concerns about excessive rains delaying soybean planting in Argentina underpinned the market. John Dee, meteorologist for Global Weather Monitoring, said rain was likely Thursday and Friday and again through much of next week.

• Crop weather in Brazil was mostly satisfactory, but some southern areas could use more rain, Dee said.

• Logistical jams and transportation delays anticipated in Brazil early next year will likely slow the flow of a record soybean crop to buyers around the world who are counting on South America to fill the gap left by drought in the United States.

• Rabobank said in an annual outlook that it expected CBOT soybean prices to average $14.75 a bushel in the first quarter of calendar year 2013 before sliding almost 12 percent to $13 in the fourth quarter.

 

• Cash basis offers for soymeal softened at a few locations in the interior U.S. Midwest as recent gains in CBOT futures chilled demand from livestock and poultry producers.

 

• Trade expects USDA's weekly export sales report on Thursday to show sales of U.S. soybeans at 500,000 to 750,000 tonnes, soymeal sales at 150,000 to 250,000 and soyoil sales at 100,000 to 200,000 tonnes.

• January soybeans SF3 face technical resistance at their 200-day moving average of $14.59. The contract's nine-day relative strength index stood at 51 after the close, in neutral technical territory.

FCPO- SINGAPORE, Nov 28 (Reuters) - Malaysian palm oil futures eased on Wednesday, dropping for a second straight session on concerns that U.S. fiscal woes could hamper global economic growth and commodity demand.

Prices touched their highest in almost a week on Tuesday as a Greek debt deal provided brief comfort for investors, but lack of progress in U.S. budget talks and speculation that Malaysian palm oil inventories could hit a record high this month kept prices in a tight range.

"The market looks like it's expected to just stay rangebound this week," said a Singapore-based trader with a global commodities trading house. "But for the longer term, sentiment has improved, compared to a month ago."

The benchmark February contract FCPOc3 on the Bursa Malaysia Derivatives Exchange fell 0.7 percent to close at 2,394 ringgit ($784) per tonne. Prices traded in a range of 2,383 to 2,417 ringgit.

Total traded volumes stood at 31,818 lots of 25 tonnes each, higher than the usual 25,000 lots.

Technicals showed mixed signals for palm oil, but it is biased to drop to 2,353 ringgit per tonne, said Reuters market analyst Wang Tao.

Malaysian palm oil stocks hit a record high in October at 2.51 million tonnes on seasonally high production. While some traders said slower output this month may ease pressure on the stockbuild, concerns remained that export demand might not be enough to reduce stocks.

Cargo surveyors showed a slight drop in shipments in the first 25 days of November from a month ago.

The European Commission has made public a decision taken last week to allow palm oil producers under the Roundtable on Sustainable Palm Oil scheme to qualify for biofuel subsidies, a move that could spur more European demand for the tropical oil.

In other markets, Brent oil slipped on Wednesday as investors nervously eyed talks to head off a looming fiscal disaster in the United States, the world's top oil consumer.

The U.S. budget woes also weighed on other vegetable oil markets. U.S. soyoil for December delivery BOZ2 fell 0.7 percent in early trade. The most-active May 2013 soybean oil contract DBYcv1 on the Dalian Commodity Exchange closed 0.4 percent lower.

The market also took note of Olam International's OLAM.SI detailed defence on Wednesday against short-seller Muddy Waters' attacks on its accounting practices and acquisitions, emphasising it was not at risk of insolvency.

Shares of the Singapore commodities firm tumbled as much as 6 percent to a three-and-a-half year low, but later recouped some losses.

REGIONAL EQUITY- BANGKOK, Nov 28 (Reuters) - The Philippine index closed at a record high on Wednesday amid good buying interest in large caps, following stronger-than-expected third-quarter GDP growth, while Indonesia fell for a second session as market players cashed in on recent gainers.

In Manila, the index .PSI rose 0.9 percent to 5,633.72, scaling a record for the fourth session. The Philippine economy grew a faster-than-expected 7.1 percent in the September quarter, reflecting strong domestic demand and government spending.

"The Philippines is having a fantastic year despite strong global headwinds. Most nations in Asia saw a tough third quarter while the Philippines had the fastest GDP expansion since 2010," HSBC said in a report.

"This is largely due to the fact that policy makers took timely measures to counterbalance an anticipated slowdown of demand from China and the Eurozone as well as the resilient nature of the services-oriented economy," it said

In a choppy session, Jakarta's Composite Index .JKSE ended down 0.8 percent at its lowest close in more than three weeks, led by a 5 percent fall in PT Astra International Tbk ASII.JK.

Astra shares, a proxy of Indonesia's consumer sector, had gained almost 2 percent last week versus a 0.05 percent loss of the broader market.