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Market Daily Report: Bursa Malaysia Ends Higher In Line With Most Regional Markets

KUALA LUMPUR, Sept 20 (Bernama) -- Bursa Malaysia ended higher on Friday in line with most Asian markets, mirroring gains from Wall Street, where investors welcomed the US Federal Reserve's substantial interest rate cut. The FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 3.17 points, or 0.19 per cent, to 1,668.82 at the close from Thursday's close of 1,665.65. It opened 5.03 points higher at 1,670.68, trading between 1,668.48 and 1,674.04 throughout the session. In the broader market, gainers outpaced decliners 732 to 468, while 465 counters were unchanged, 850 untraded and 32 suspended. Turnover swelled to 4.19 billion units worth RM5.97 billion, from Thursday's 3.99 billion units worth RM4.08 billion. UOB Kay Hian Wealth Advisors head of investment research, Mohd Sedek Jantan, noted the FBM KLCI's gains were led by utilities, logistics, and banking stocks, reflecting improved market sentiment. Additiona

Stocks and Dollar Rise as Fed Charts Path Toward Soft Landing

 

The US dollar strengthened, long-dated bond yields rose, and Asian stocks saw gains after the Federal Reserve (Fed) began its easing cycle with a 50 basis point rate cut. While the cut supported market optimism, the Fed tempered expectations by signaling a balanced approach aimed at keeping the economy on a stable trajectory.

The S&P 500 hit a record high before closing slightly lower, and futures rose in Asia, with the Nasdaq futures up 0.9% and Japan's Nikkei surging 2%. Australian shares also hit a record high.

Following the Fed's decision to lower the benchmark policy rate to 4.75%-5%, the US dollar initially dropped to a two-and-a-half-year low against sterling but rebounded sharply, gaining nearly 1% against the yen and stabilizing at US$1.1081 against the euro. Ten-year Treasury yields rose by eight basis points, and gold briefly surged to a record near US$2,600 an ounce before stabilizing at US$2,559.

The Fed's rate cut is expected to boost spending and support the US economy, with Fed Chair Jerome Powell emphasizing that future moves would be data-driven and gradual. "We’re recalibrating policy down over time to a more neutral level," Powell said, signaling that the Fed is maintaining a cautious stance.

Asian markets had mixed reactions, with South Korean chipmakers experiencing sharp declines, while Hong Kong’s Hang Seng rose slightly and China’s CSI300 fell 0.4%. In the commodities market, Brent crude dropped 0.3% to US$73.42 a barrel.

The Bank of England and Bank of Japan are set to meet later this week, with expectations of a rate hold from the BoE and possible future hikes from the BoJ.

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