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
Japan’s labour market remained tight in June, sustaining upward pressure on wages as companies compete for workers.
The unemployment rate dropped to 2.5% in June from 2.6% in May, contrary to economists' expectations of a steady 2.6%. The number of employed individuals increased by 370,000, led by gains among women, while the number of unemployed rose by 20,000.
An ageing and shrinking workforce has led to chronic labour shortages, prompting companies to agree to the highest wage gains in over three decades during annual spring negotiations, with pay rises exceeding 5%.
“The labour market remains tight,” said Takeshi Minami, economist at Norinchukin Research Institute. “That will certainly add upward pressure on wages and smaller companies don’t have a choice but to raise wages to secure manpower.”
The labour ministry has proposed a record 5% increase in the hourly minimum wage for this fiscal year, indicating widespread wage growth.
The Bank of Japan (BOJ) is seeking evidence that sustained wage increases will boost consumption and demand-led price growth, potentially allowing further normalization of monetary policy. The BOJ will detail its quantitative tightening plans after a two-day meeting on Wednesday, with about 30% of surveyed economists expecting an interest rate hike.
In a separate report, the job-to-applicant ratio edged lower to 1.23, the lowest since March 2022, while the ratio of new job openings-to-seekers rose to 2.26, indicating ongoing struggles for companies to fill positions.
Labour shortages are particularly challenging for smaller companies. In the first half of 2024, 182 companies went bankrupt due to manpower constraints, the highest ever recorded, with 80% of these firms having fewer than 10 employees, according to Teikoku Databank.
Key Takeaways:
- Japan’s unemployment rate dropped to 2.5% in June from 2.6% in May.
- Labour shortages have led to the highest wage gains in over three decades.
- The labour ministry proposed a record 5% increase in the minimum wage.
- BOJ is monitoring wage increases for potential monetary policy adjustments.
- Job-to-applicant ratio fell to 1.23, while new job openings-to-seekers ratio rose to 2.26.
- Smaller companies are particularly impacted, with a record number of bankruptcies due to manpower constraints.
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