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 stocks fell on Wednesday, driven by concerns over global growth, the impact of the U.S. presidential debate, and an anticipated U.S. inflation report. The yen gained strength after a Bank of Japan (BOJ) member indicated potential for further interest-rate hikes.
Key Takeaways:
Market Reactions to Economic Indicators and Events: The region’s equities gauge declined for a third consecutive session, led by Japan and Hong Kong, as traders prepared for the U.S. consumer price index release and the Federal Reserve's policy meeting next week. Concerns over global growth were heightened by a drop in oil prices below $70 per barrel and lower U.S. Treasury yields.
Currency Movements and Policy Expectations: The dollar edged lower while the yen reached its strongest level against the greenback since January. This shift followed comments from BOJ policymaker Junko Nakagawa, who suggested that the BOJ would adjust its easing measures if economic conditions aligned with expectations. The yen's appreciation reflects market sentiment on future BOJ rate hikes.
Impact of the U.S. Presidential Debate on Market Sentiment: The ongoing debate between Vice President Kamala Harris and former President Donald Trump is influencing market sentiment, especially regarding U.S. tax policies, government spending, and economic strategies. Investment strategist Billy Leung noted that changes in the dollar's value could impact Asian exports, either boosting or hurting competitiveness and inflation depending on the direction.
China's Economic Struggles and Market Reactions: In China, onshore stocks are nearing a five-year low as partial stimulus measures fail to boost earnings and economic outlook. Markets are closely watching the debate for hints on the future of U.S.-China relations, particularly in defense, biotechnology, and banking sectors.
Global Commodity Trends and U.S. Market Performance: Crude oil prices have dropped almost 20% this quarter due to concerns over slowing demand from the U.S. and China. Meanwhile, U.S. markets saw gains, with the S&P 500 rising 0.4% and Tesla leading gains among major stocks. Conversely, JPMorgan Chase and Bank of America faced declines after adjusting earnings expectations.
The mix of political events, economic data, and market reactions illustrates the complex global financial environment, with traders and investors remaining vigilant in their strategies.
Comments
Post a Comment