KUALA LUMPUR, Nov 19 (Bernama) -- Bursa Malaysia gave up earlier gains to end mixed today, amid a higher regional market showing, as property, construction, and healthcare counters attracted buying interests, while plantation, banking, and telecommunication stocks saw some profit-taking, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 1.70 points to close at 1,602.34 from yesterday’s close of 1,604.04. The benchmark index, which opened 0.86 of-a-point lower at 1,603.18, moved between 1,601.02 and 1,608.88 during the trading session. However, the broader market was mixed to higher, with gainers leading decliners by 565 to 438 while 502 counters remained unchanged, 961 untraded, and 14 suspended. Turnover narrowed to 2.83 billion units valued at RM2.08 billion versus 2.96 billion units valued at RM2.23 billion yesterday. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the benchmark index remained range-bound and it required a dec
The Bank of Japan (BOJ) raised interest rates on Wednesday and introduced a detailed quantitative tightening (QT) plan, marking a significant step towards phasing out a decade of massive stimulus.
Key Decisions:
- Interest Rates: BOJ raised the overnight call rate target to 0.25% from 0%-0.1%, a level not seen since 2008.
- Quantitative Tightening: The BOJ will halve its monthly bond purchases to ¥3 trillion (RM90.56 billion) starting January-March 2026, down from ¥6 trillion.
Market Reaction:
- Currency: The yen initially rallied 0.8% to a three-month high of 151.58 per dollar but later reversed gains.
- Bonds: Yields on 10-year Japanese government bonds fell slightly following the announcement.
Economic Outlook:
- The BOJ cited broadening wage hikes and rising import prices as reasons for the rate increase.
- The decision aligns with rising inflation expectations and a need for vigilant inflation risk management.
Comments from Economists:
- Fred Neumann, chief Asia economist at HSBC, noted, "The BOJ is on course to tighten further, with another interest hike likely by the start of next year."
Projections and Future Plans:
- The BOJ's quarterly outlook maintained the projection that inflation would stay around 2% through fiscal 2026.
- Governor Kazuo Ueda is expected to further explain the decision at a press conference.
Context:
- The decision comes as the US Federal Reserve considers cutting interest rates, potentially reversing its aggressive rate-hike cycle.
- The BOJ had ended negative rates and bond yield control in March, shifting away from its radical stimulus programme.
The BOJ's move is seen as a decisive step in normalizing monetary policy, signaling a potential path for further rate hikes if economic conditions continue to align with their projections.
Comments
Post a Comment