Skip to main content

Featured Post

Market Daily Report: Bursa Malaysia Ends Higher In Line With Most Regional Markets

KUALA LUMPUR, Sept 20 (Bernama) -- Bursa Malaysia ended higher on Friday in line with most Asian markets, mirroring gains from Wall Street, where investors welcomed the US Federal Reserve's substantial interest rate cut. The FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 3.17 points, or 0.19 per cent, to 1,668.82 at the close from Thursday's close of 1,665.65. It opened 5.03 points higher at 1,670.68, trading between 1,668.48 and 1,674.04 throughout the session. In the broader market, gainers outpaced decliners 732 to 468, while 465 counters were unchanged, 850 untraded and 32 suspended. Turnover swelled to 4.19 billion units worth RM5.97 billion, from Thursday's 3.99 billion units worth RM4.08 billion. UOB Kay Hian Wealth Advisors head of investment research, Mohd Sedek Jantan, noted the FBM KLCI's gains were led by utilities, logistics, and banking stocks, reflecting improved market sentiment. Additiona
Post a Comment

Market Update: Asian Stocks Slide; Yen Regains Footing

Asian equities tumbled as U.S. tech shares faltered in late trading, with Micron Technology's dismal sales outlook rattling investor confidence. The yen, after a sharp plunge, clawed back some losses amid speculation of possible intervention by Japanese officials.

Market Performance

Stocks across Japan, Australia, and China declined, pushing the MSCI Asia Pacific Index toward its first loss in three sessions. U.S. equity futures edged lower as Micron's weak forecast rippled through tech heavyweights like Nvidia. The yen, after sliding 0.7% to its lowest since 1986, managed a modest recovery but remains down over 12% against the dollar this year.

Currency and Bond Markets

Emerging-market currencies dipped to a two-month low, and Asian currencies hovered near levels last seen in 2022. U.S. Treasuries continued to slump, reflecting concerns over persistent inflation ahead of key PCE data.

Andrew Brenner of NatAlliance Securities remarked, "The Fed's stance of higher-for-longer is keeping U.S. rates elevated, drawing capital into the dollar and creating headaches for Japan."

Tech and Banking Sectors

Tech stocks took a hit following Micron’s bleak outlook, dragging down sector giants including Nvidia. Conversely, U.S. banks saw a positive turn as the Federal Reserve announced the largest institutions passed their annual stress tests, paving the way for increased shareholder payouts.

Market Breadth Concerns

Efforts to diversify beyond megacap tech stocks were short-lived. Market breadth measures signal fragility, raising doubts about the rally's durability. "The stock market's reliance on big tech is worrisome. The recent volatility might be a precursor to deeper issues," cautioned David Bahnsen of The Bahnsen Group.

Bond Sales and Commodities

Asia-Pacific firms and governments reached a nine-month high in dollar bond sales, aiming to lock in tight spreads. India’s sovereign debt market is drawing global investors, highlighting the country’s business challenges.

Commodities showed mixed results. Gold steadied after a two-day drop, while West Texas Intermediate crude inched lower, reflecting cautious market sentiment.

Key Events This Week

  • China: Industrial profits
  • Eurozone: Economic confidence
  • US: Durable goods, jobless claims, GDP, PCE inflation, spending, income, University of Michigan consumer sentiment
  • Nike: Earnings report
  • Japan: Tokyo CPI, unemployment, industrial production
  • Fed's Thomas Barkin: Speech

Main Market Moves

Stocks:

  • S&P 500 futures: -0.3%
  • Nikkei 225 futures: -0.8%
  • Japan’s Topix: -0.4%
  • Australia’s S&P/ASX 200: -1%
  • Hong Kong’s Hang Seng: -1.8%
  • Shanghai Composite: -0.7%
  • Euro Stoxx 50 futures: -0.3%
  • Nasdaq 100 futures: -0.4%

Currencies:

  • Bloomberg Dollar Spot Index: Little changed
  • Euro: $1.0691 (little changed)
  • Japanese yen: 160.47 per dollar (+0.2%)
  • Offshore yuan: 7.2956 per dollar (little changed)
  • Australian dollar: $0.6650 (little changed)

Cryptocurrencies:

  • Bitcoin: $60,951.35 (little changed)
  • Ether: $3,382.55 (-0.2%)

Bonds:

  • 10-year Treasuries yield: 4.34% (little changed)
  • Japan’s 10-year yield: 1.075% (+4.5 basis points)
  • Australia’s 10-year yield: 4.40% (+9 basis points)

Commodities:

  • West Texas Intermediate crude: $80.52 a barrel (-0.5%)
  • Spot gold: Little changed

Implications for Investors

Today's market movements could have significant implications for your portfolio, particularly if you're exposed to tech stocks or Asian markets. The yen's recovery and ongoing currency fluctuations warrant close attention, as they may signal broader economic trends.

For those invested in commodities, the stability in gold and slight decline in crude oil prices might offer an opportunity to reassess positions.

Stay tuned for further updates as the week progresses, with key economic indicators and earnings reports set to provide more direction.

Labels:

Comments

Post a Comment

Popular posts from this blog

INTC Share Watch and News

Stock Info Market Monitor Company Profile Intel Corporation designs, manufactures, and sells integrated circuits for computing and communications industries worldwide. It offers microprocessor products used in notebooks, netbooks, desktops, servers, workstations, storage products, embedded applications, communications products, consumer electronics devices, and handhelds. The company also offers system on chip products that integrate its core processing functionalities with other system components, such as graphics, audio, and video, onto a single chip. It also provides chipset products that send data between the microprocessor and input, display, and storage devices, such as keyboard, mouse, monitor, hard drive, and CD or DVD drives; motherboards that has connectors for attaching devices to the bus, and products designed for desktop, server, and workstation platforms; and wired and wireless connectivity products, including network adapters and embedded wireless cards used to translat
1 comment
Read more

Analysts See Asset Resilience of Bank of Chengdu Benefiting Hong Leong Bank

Analysts predict that the asset quality of Bank of Chengdu, in which Hong Leong Bank Bhd holds a 19.76% stake, will remain robust due to its strict risk management policies and proactive measures. Key Takeaways: Strong Risk Management Practices : According to CIMB, Bank of Chengdu has adopted a conservative risk culture, performing thorough assessments of location, developer reputation, project viability, and management integrity before financing property projects. The bank closely monitors early warning signals like construction progress, sales progress, budget overruns, and fund usage by developers to mitigate potential risks. Proactive Measures Against Property Slowdown : The bank's precautionary measures allowed it to reduce exposure to problematic property loans and exit risky loans before China's property market slowdown. This conservative approach is expected to benefit Hong Leong Bank by minimizing potential asset quality concerns. Continued Optimism and Buy Recommendat
Post a Comment
Read more

Investors Keep Buying US Junk Debt Despite Weak Protections

  When US-based construction material supplier Wilsonart issued a junk bond to raise US$500 million (RM2.13 billion) for an acquisition this summer, a research firm warned potential investors about the bond's weak protections. The bond’s covenants could allow the company to move valuable assets to another entity and raise more money, potentially disadvantaging bond investors, according to Covenant Review , a research firm. This warning comes amid growing concerns in credit markets as more companies engage in practices like "liability management exercises," where they borrow more against the same assets. These practices, often favoring some creditors over others, have been dubbed "creditor-on-creditor violence," prompting some creditors to unite to protect their interests. Despite the warnings, investors eagerly purchased Wilsonart's offering, underscoring a paradox in US credit markets. While investors face the consequences of weak covenants, they continu
Post a Comment
Read more