KUALA LUMPUR, July 30 (Bernama) -- Bursa Malaysia's key index closed at an intraday high today, supported by continued buying interest even as renewed geopolitical tensions and a weaker overnight lead from Wall Street following the US Federal Reserve's (Fed) decision to stand pat on interest rates weighed on broader sentiment. The Fed has decided to hold rates steady for the fifth consecutive meeting, with the Federal Funds Rate unchanged between 3.50 per cent and 3.75 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.84 points to 1,720.40 from yesterday’s close of 1,715.56. The benchmark index, which opened 1.14 points lower at 1,714.42, hit its lowest level of 1,710.69 in early trade before gaining momentum for the rest of the day. However, the broader market was negative with losers outpacing gainers 581 to 411, while 612 counters were unchanged, 1,173 untraded, and 87 suspended. Turnover declined to 2.49 billion units valued at RM2.25 billion from ...
Asian shares advanced on Wednesday, while the New Zealand dollar tumbled after the Reserve Bank of New Zealand unexpectedly cut interest rates by 25 basis points to 5.25%, signaling more easing ahead. Meanwhile, the U.S. dollar faced losses as soft U.S. producer price data raised hopes for tame consumer inflation, pushing bond yields lower.
Key Highlights:
New Zealand Rate Cut Impact: The kiwi dollar dropped 0.7% following the Reserve Bank of New Zealand's rate cut and indication of future easing. This move caught markets off guard, adding pressure to the currency.
Japanese Political Shakeup: Japanese Prime Minister Fumio Kishida announced his intention to step down as the ruling party leader in September, a decision driven by rising prices and political scandals. The yen strengthened slightly to 146.53 per dollar, and Japan’s Nikkei index, which had earlier posted gains, flattened after the news broke.
Asian Markets Performance: MSCI's broadest index of Asia-Pacific shares outside Japan climbed 0.5%, buoyed by a strong rebound in U.S. markets. However, Hong Kong's Hang Seng slipped 0.4%, and mainland China’s blue-chip stocks fell 0.6%.
U.S. Inflation Data Anticipation: Investors are closely watching upcoming U.S. consumer price figures for July, which could influence the Federal Reserve’s decision on a potential half-point rate cut in September. The chances of such a cut increased slightly to 53% from 50%, according to the CME FedWatch Tool.
Market Reactions: U.S. bond yields fell, with two-year yields dropping seven basis points to 3.4142%, and ten-year Treasury yields holding at 3.3341% after a five basis point drop. The U.S. dollar also weakened, with the euro nearing a significant resistance level at US$1.10.
Commodity Prices: Crude oil prices recovered some losses, with Brent crude futures rising 0.6% to US$81.19 a barrel and U.S. West Texas Intermediate crude gaining 0.7% to US$78.91. Gold prices edged up 0.1% to US$2,468.78 an ounce.
Outlook: The focus now shifts to the U.S. consumer price data, which will be crucial in shaping market expectations for the Federal Reserve's next move. In the meantime, the markets remain sensitive to developments in New Zealand’s monetary policy and Japan’s political landscape.
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