KUALA LUMPUR, June 5 (Bernama) -- Bursa Malaysia closed higher, with the benchmark index rising 0.60 per cent as bargain-hunting persisted following the recent sell-off, despite weaker performances across regional markets. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) gained 10.17 points to 1,693.43 from Thursday's close of 1,683.26. The benchmark index opened 3.19 points higher at 1,686.45 and traded between 1,684.36 and 1,698.53 during the trading session. However, broader market sentiment remained negative, with losers outnumbering gainers 666 to 477. A total of 574 counters were unchanged, 958 untraded and 12 suspended. Turnover fell to 3.41 billion units worth RM3.04 billion from 3.47 billion units worth RM3.58 billion on Thursday.
Japan's Nikkei share average rebounded on Monday from a three-month low, buoyed by a positive finish on Wall Street at the end of last week, which lifted investor sentiment.
Key Highlights:
Market Performance:
- Nikkei: Closed 2.13% higher at 38,468.63, marking its first day of gains in nine sessions.
- Topix: Rose 2.23% to 2,759.67.
Wall Street Influence:
- Wall Street's major indices ended higher last Friday, driven by a rebound in tech megacaps and optimism that the Federal Reserve will soon begin cutting interest rates following favorable inflation data.
Market Sentiment:
- The pause in the decline of US technology shares has positively impacted Japanese equities.
- Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management, noted the positive influence of the stabilization in US tech shares on Japanese markets.
Sector Performance:
- All but 11 of the Nikkei's 225 constituents advanced.
- Notable gains in chip-related shares: Tokyo Electron (up 3.7%) and Advantest (up 4.1%).
- AI-focused start-up investor SoftBank Group climbed 2.3%.
- All 33 of the Tokyo Stock Exchange's industry sectors saw gains.
Upcoming Events:
- The rally precedes policy meetings of the Bank of Japan (BOJ) and the Federal Reserve (Fed) on July 30-31.
- Ichikawa suggests the Nikkei may experience limited movement as markets await the outcomes of these meetings.
Earnings Focus:
- Attention will be on earnings from the US's "Magnificent Seven" firms this week.
Individual Stock Movements:
- Shin-Etsu Chemical: Surged 8.6% after surpassing its operating profit forecast for the April-June period.
- Eisai: Plunged nearly 13% following the European Union regulator's rejection of its Leqembi treatment for early Alzheimer's disease.
The broad-based rally in Japan's Nikkei index, influenced by the positive turnaround on Wall Street and upcoming central bank meetings, reflects renewed investor optimism and strategic positioning ahead of key economic decisions.
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