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 fell sharply on Wednesday, reacting to the significant sell-off on Wall Street following Iran's ballistic missile strike on Israel, which has heightened fears of a broader regional conflict. This geopolitical tension also led to an increase in crude oil prices as investors worry about potential supply disruptions.
In the face of uncertainty, investors turned to safer assets, pushing US Treasury bond yields down during Asian trading hours, while gold remained near an all-time high. The safe-haven dollar traded close to its strongest level in three weeks against the euro, buoyed by a resilient US job market that supports the case for a smaller Federal Reserve interest-rate cut in November. Meanwhile, eurozone inflation trends are bolstering expectations for easing by the European Central Bank this month.
Japan's Nikkei fell 1.5%, South Korea's Kospi dropped 1.3%, and Australia’s benchmark lost 0.3%. MSCI's broadest index of Asia-Pacific shares slipped approximately 0.5%. Hong Kong’s Hang Seng Index had yet to open after a holiday on Tuesday, and mainland Chinese markets are closed for the week-long Golden Week holiday. Trading in Taiwan was suspended due to a typhoon.
US S&P 500 futures weakened by 0.16%, following a 0.9% decline in the cash index overnight. Chris Weston, head of research at Pepperstone, noted, "In the chain of potential market volatility shocks, geopolitics will typically trump economics, corporate earnings, or a central bank response." He added, "The situation remains fluid, and the slightest calming or increased aggression in the rhetoric from Israel or Iran could result in a sizeable impact on sentiment in markets."
Iran announced early on Wednesday that its missile attacks on Israel had concluded, barring further provocations, although both Israel and the US have promised retaliation.
Brent crude futures gained more than 1% to $74.33 per barrel, extending Tuesday's 2.5% advance, while US WTI futures rose 1.3% to $70.73 per barrel, following a 2.4% rally the previous day.
Gold prices eased slightly, down 0.16% to $2,658.63 per ounce, after a more than 1% jump in the previous session brought it close to last month's record high of $2,685.42. Benchmark 10-year Treasury yields ticked down by 1.5 basis points to 3.7278%.
The dollar index, which measures the US currency against the euro and five other major rivals, remained steady at 101.21 after hitting 101.39 on Tuesday, the highest level since September 19. The euro was little changed at $1.1070, following a 0.6% drop in the previous session.
Data released on Tuesday indicated that inflation in the euro area fell below the ECB's 2% target, strengthening bets for a quarter-point rate cut on October 17.
In the US, figures overnight showed a solid economy, with Fed Chair Jerome Powell pushing back against the likelihood of another 50 basis point rate cut when the US central bank meets next month. Job openings unexpectedly increased in August after two straight monthly decreases, though hiring remained soft, consistent with a slowing labor market.
Attention will also be on US politics as Democrat Tim Walz and Republican JD Vance faced off in a vice presidential debate late Tuesday.
Comments
Post a Comment