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.
Katsunobu Kato, former health minister of Japan and a candidate in the ruling party's leadership race, has proposed a new economic stimulus package aimed at boosting domestic investment and revitalizing regional economies. His plan also includes a significant push to double household income through wage hikes to drive a consumption-led economic recovery.
Key Takeaways:
Focus on Wage Increases and Capital Expenditure: Kato emphasized the need to boost wages and capital expenditure as Japan emerges from deflation. He proposes reallocating corporate reserves towards these goals, believing that strong consumer spending will create competition, enhance corporate profitability, and lead to further wage increases. This approach mirrors the policies of incumbent Prime Minister Fumio Kishida.
Stimulus Package to Drive Economic Growth: Kato called for a comprehensive stimulus package to fund domestic spending, which would support increased wages and capital investment. He argues that accelerating efforts to lift Japan out of deflation is crucial to achieving sustainable economic growth and recovery.
Leadership Race and Political Prospects: While Kato is not currently the frontrunner in the Liberal Democratic Party's (LDP) leadership race scheduled for September 27, his experience in key cabinet roles positions him as a potential candidate for finance minister if he does not win the premiership. The winner of the LDP leadership race will automatically become Japan's next prime minister, given the party's control of parliament.
Kato's proposals reflect a continuation of current economic policies with a focus on driving domestic consumption and investment to foster long-term economic stability and growth.
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