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 gained on Monday, following stronger-than-expected US jobs data that boosted optimism about the resilience of the world’s largest economy. This has renewed hopes for a soft landing rather than a recession.
Japanese and Australian equities saw gains, while Hong Kong futures slipped. The S&P 500 and Treasury yields rose last Friday after US employers added the most jobs in six months, which recalibrated expectations for the Federal Reserve’s next interest-rate cut. The yield on 10-year Treasuries advanced by one basis point to 3.98%.
Kyle Rodda, senior analyst at Capital.com, highlighted the favorable conditions for Asian markets, citing the Goldilocks US economy and Chinese stimulus. Investors are also looking forward to China’s reopening on Tuesday and the announcement of economic policies by the National Development and Reform Commission (NDRC).
Meanwhile, New Zealand bonds fell in anticipation of the central bank’s potential 50 basis point interest-rate cut on Wednesday.
In the commodities market, oil prices fell amid speculation of Israel’s possible retaliation against Iran after a recent missile attack, with President Joe Biden discouraging strikes on Tehran’s crude fields.
Key market movements:
Stocks:
- S&P 500 futures were steady.
- Hang Seng futures fell 1%.
- Japan’s Topix rose 1.6%.
- Australia’s S&P/ASX 200 rose 0.1%.
- Euro Stoxx 50 futures rose 0.9%.
Currencies:
- The Japanese yen was little changed at 148.74 per dollar.
- The offshore yuan was little changed at 7.0996 per dollar.
- Bitcoin rose 0.4% to $62,869.07.
- Ether rose 0.3% to $2,444.9.
Commodities:
- WTI crude fell 0.6% to $73.92 a barrel.
- Gold fell 0.2% to $2,649.14 an ounce.
This week, market participants will also be watching Germany’s growth outlook, emerging market inflation readings, and the Fed’s September meeting minutes.
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