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
Oil prices fell to seven-week lows on Tuesday due to a weaker demand outlook, while bond, currency, and stock markets traded cautiously ahead of central bank meetings in the US and Japan.
Brent crude dropped to $79.70, with traders focusing on Chinese demand concerns. Copper, iron ore, zinc, and aluminium prices also declined, as China’s Politburo meeting did not announce new economic support measures.
“The US economy is expected to be softer this quarter and next, and the euro area isn’t compensating. China’s issues persist,” said Chris Scicluna, economist at Daiwa Capital.
The S&P 500 steadied after a two-week downturn, and futures were flat late in the Asia session. The MSCI All-World index was flat, and London’s FTSE 100 fell due to declines in basic resources stocks and a profit miss by Diageo.
Preliminary eurozone data is expected to show 0.5% annual economic growth for Q2. German 10-year Bund yields were steady at 2.355%.
'Calm Before the Storm' Interest rates are in focus. Japanese government bond yields fell, with the 10-year JGB yield down three basis points to 0.995%. US 10-year Treasury yields were steady at 4.182%.
Markets expect no US rate cut this week but foresee a 25-basis-point reduction in September. Japan’s central bank might hike rates by 10 basis points and provide details on reducing bond purchases.
The dollar and yen remained stable. The euro was at $1.08235, while the dollar/yen pair rose 0.45% to 154.72.
Microsoft and AMD will report earnings later, and preliminary CPI data for Germany and Spain is due. Australian inflation data and the Bank of England’s rate decision are also upcoming.
Key Takeaways:
- Commodities, including oil and metals, fell on demand concerns.
- Stock markets remained steady ahead of central bank meetings.
- US and Japanese central banks are key focus points for potential rate changes.
- Bond yields remained steady, and major currencies stayed within recent ranges.
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