Japan’s currency may face continued downward pressure if policymakers move too slowly on interest rate hikes, according to the head of the Asian Development Bank . Rate Gap with US Driving Yen Weakness ADB President Masato Kanda highlighted that the wide interest rate differential between Japan and the US remains the key driver behind yen weakness. Investors continue to favour the US dollar due to higher yields The Bank of Japan risks being seen as “behind the curve” on inflation As a result, the yen struggles to strengthen even when global risk sentiment improves . BOJ’s Slow Response Raises Market Concerns Despite inflation hovering around target levels for years, the BOJ has maintained a cautious policy stance to avoid damaging Japan’s fragile economic recovery. However, markets may react negatively if: The BOJ delays rate hikes further Investors lose confidence in Japan’s poli...
The FBM KLCI continued the downtrend this week to close at 1744.57.
In comparison to last Friday (05 Dec 2014), the FBM KLCI was at 1749.30. There is still a slight drop in the market as oil price continue to decline.
Bursa Malaysia's top decliners are still the oil & gas related stocks like Petronas Dagangan Bhd and Petronas Gas Bhd.
It is obvious that the market is taking cue from how the movement of oil price is at the moment. The market is still very volatile and it's difficult to foresee how the movement of the stock will go at the moment, but if the oil price were to continue in this decline, it's pretty obvious that's where the stock market will be heading as well.
Across Bursa, there are 629 decliners with only 178 gainers.
Expect the market to remain volatile in this coming few days
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