KUALA LUMPUR, July 30 (Bernama) -- Bursa Malaysia's key index closed at an intraday high today, supported by continued buying interest even as renewed geopolitical tensions and a weaker overnight lead from Wall Street following the US Federal Reserve's (Fed) decision to stand pat on interest rates weighed on broader sentiment. The Fed has decided to hold rates steady for the fifth consecutive meeting, with the Federal Funds Rate unchanged between 3.50 per cent and 3.75 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.84 points to 1,720.40 from yesterday’s close of 1,715.56. The benchmark index, which opened 1.14 points lower at 1,714.42, hit its lowest level of 1,710.69 in early trade before gaining momentum for the rest of the day. However, the broader market was negative with losers outpacing gainers 581 to 411, while 612 counters were unchanged, 1,173 untraded, and 87 suspended. Turnover declined to 2.49 billion units valued at RM2.25 billion from ...
The Bank of Japan (BOJ) is conducting key meetings with market participants, including banks and securities firms, to determine the appropriate pace for reducing its bond purchases. These meetings aim to gather market views ahead of an official announcement later this month.
Key Points:
Current Holdings: The BOJ owns more than half of Japan’s government bonds due to its long-standing quantitative easing program, making its bond-buying decisions highly influential.
Planned Reductions: Expectations are that the BOJ will reduce its monthly bond purchases from ¥6 trillion to around ¥5 trillion, with a potential further reduction to ¥3 trillion over the next two years.
Yen Impact: A significant reduction in bond purchases could help strengthen the yen, which has recently weakened to a 38-year low.
Financial Implications: The reduction in bond purchases will impact Japan’s national debt servicing costs and may require the finance ministry to adjust its bond issuance strategy.
Continued Support: Despite ending large-scale easing in March, the BOJ continues to buy bonds to stabilize the market, maintaining a ¥585 trillion bond portfolio.
The BOJ’s cautious approach aims to balance reducing market intervention with maintaining economic stability. The outcomes of these consultations will be crucial in shaping Japan’s monetary policy and financial landscape.
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