KUALA LUMPUR, July 29 (Bernama) -- Bursa Malaysia rebounded to close higher on Wednesday on selective buying of defensive stocks after a volatile trading session. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said consumer products and services stocks lifted the key index higher, overcoming lingering geopolitical concerns. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 3.08 points to 1,715.56 from yesterday’s close of 1,712.48. The benchmark index, which opened 1.91 points higher at 1,714.39, moved between 1,710.79 and 1,720.59 during the day’s trading. In the broader market, gainers outstripped decliners 550 to 476, while 612 counters were unchanged, 1,129 untraded, and 48 suspended. Turnover rose to 2.96 billion units valued at RM2.48 billion from 2.94 billion units valued at RM2.56 billion on Tuesday.
Japanese household spending unexpectedly fell by 1.8% in May compared to the previous year, against forecasts of a slight increase. This decline is primarily due to higher food prices and a weak yen, which has made overseas travel more expensive.
Key Points:
- Consumer Spending Decline: Household spending fell 1.8% year-on-year in May and 0.3% month-on-month.
- Rising Prices: Higher food prices and a weak yen have squeezed consumers' purchasing power.
- Economic Concerns: This drop in spending raises concerns about the BOJ's expectation of a solid economic recovery needed to maintain a 2% inflation target.
- BOJ's Outlook: Despite wage hikes and government subsidies, the BOJ might delay raising interest rates until more data confirms a recovery.
Conclusion:
The unexpected decline in household spending complicates the BOJ's decision on raising interest rates. The BOJ will closely watch upcoming economic data, with the next policy meeting scheduled for July 30-31, to decide on future monetary policies.
Comments
Post a Comment