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.
Asian shares are poised to close a tumultuous week on a high note, with Japanese stocks nearly recouping all of Monday’s dramatic losses, while the yen continues to weaken as expectations for an aggressive U.S. rate cut fade.
Key Highlights:
Nikkei’s Comeback: Japan's Nikkei surged 1.7% on Friday, erasing the bulk of a staggering 13% drop earlier in the week. It’s now set for a modest weekly decline of just 1.5%.
Asia-Pacific Index Rebounds: MSCI's broadest index of Asia-Pacific shares outside Japan climbed 1.4%, fully reversing Thursday’s dip, leaving it down only 0.3% for the week.
U.S. Market Influence: A sharp rebound on Wall Street, where the Nasdaq soared 3% and the S&P 500 rose 2.3%, has bolstered Asian market sentiment.
Jobless Claims Data: U.S. jobless claims fell more than expected last week, easing recession fears and reducing the probability of a large Federal Reserve rate cut in September from 69% to 54%.
Chinese Economic Data: Chinese blue-chip stocks rose 0.5% as consumer inflation data showed a 0.5% increase in July, easing fears of deflation in the world’s second-largest economy.
Fed’s Stance on Inflation: Federal Reserve officials, including Kansas City Fed President Jeff Schmid, remain optimistic about inflation cooling, signaling potential interest rate cuts ahead.
Yen Under Pressure: The U.S. dollar gained for the fourth consecutive day against the yen, trading at ¥147.35, despite earlier yen gains from a surprise rate hike by the Bank of Japan.
Commodities Mixed: Crude oil prices dipped slightly on Friday but were up more than 3% for the week due to supply concerns amid escalating tensions in the Middle East. Gold prices also edged down, trading at US$2,424.26 an ounce.
Outlook: While the markets have shown resilience, analysts remain cautious. The August Non-Farm Payrolls report will be critical in determining whether this week's volatility is just a growth scare or a sign of deeper challenges ahead.
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