KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
Asian stocks firmed on Monday, buoyed by China's surprise decision to lower its 14-day repo rate by 10 basis points, just days after the central bank disappointed markets by not cutting longer-term rates. This move pushed Chinese blue chips up 0.5%, supporting regional market sentiment ahead of key central bank meetings expected to bring additional rate cuts and US inflation data that may signal further easing.
With Japan closed for a holiday, trading volumes were thin. MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.2%, following a strong 2.7% rebound last week. Nikkei futures traded higher, reflecting a continued rally from last week as the yen weakened, and the Bank of Japan (BOJ) signaled no rush to tighten policy further.
In Europe, EUROSTOXX 50 futures rose 0.3%, and FTSE futures added 0.1%. In the US, S&P 500 futures were up 0.3%, while Nasdaq futures climbed 0.5%, reflecting optimism in the wake of the Federal Reserve's recent rate cut. The S&P 500 has risen 1% so far in September and is up 19% year-to-date.
The market's momentum follows the Fed's half-point rate cut, which signaled a proactive approach to preventing a deterioration in the US labor market. Analysts note the unusual nature of initiating such a move without an immediate financial crisis or job losses, reflecting the Fed's commitment to achieving a soft landing.
This week, several Fed officials are scheduled to speak, including Chair Jerome Powell, as markets anticipate more insights into future rate moves. Attention will also focus on the core personal consumption expenditures (PCE) inflation data, which could further support expectations of additional cuts.
In other global markets, Switzerland's and Sweden's central banks are expected to cut rates this week, while the Reserve Bank of Australia is set to hold steady at 4.35%.
In commodities, oil prices continued to rise, with Brent crude adding 40 cents to US$74.89 per barrel, as hopes for lower borrowing costs boosted expectations for global economic growth. Gold prices remained elevated at US$2,620 an ounce, close to an all-time high.
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