KUALA LUMPUR, Nov 19 (Bernama) -- Bursa Malaysia gave up earlier gains to end mixed today, amid a higher regional market showing, as property, construction, and healthcare counters attracted buying interests, while plantation, banking, and telecommunication stocks saw some profit-taking, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 1.70 points to close at 1,602.34 from yesterday’s close of 1,604.04. The benchmark index, which opened 0.86 of-a-point lower at 1,603.18, moved between 1,601.02 and 1,608.88 during the trading session. However, the broader market was mixed to higher, with gainers leading decliners by 565 to 438 while 502 counters remained unchanged, 961 untraded, and 14 suspended. Turnover narrowed to 2.83 billion units valued at RM2.08 billion versus 2.96 billion units valued at RM2.23 billion yesterday. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the benchmark index remained range-bound and it required a dec
Key Takeaway: Malaysia has been removed from the US Treasury's currency monitoring list, while no major trading partner was declared a currency manipulator for the year ending June 30.
The US Treasury Department, in its final currency report under the Biden administration, found that no major trading partners manipulated their currencies. The report highlights a shift from interventions to weaken currencies, seen during Donald Trump’s first term, to measures aimed at strengthening currencies to combat inflation.
Malaysia Exits Monitoring List:
Malaysia was removed from the Treasury’s monitoring list due to improved foreign exchange practices. However, South Korea was added, citing a large global current account surplus and a significant goods and services trade deficit with the US.
Countries Remaining on the Monitoring List:
China, Japan, South Korea, Taiwan, Singapore, Vietnam, and Germany remain on the list. The Treasury monitors countries meeting two of these three criteria:
- A trade surplus with the US of at least $15 billion.
- A global account surplus above 3% of GDP.
- Persistent, one-way net foreign exchange purchases.
China Under Scrutiny:
China was retained on the list due to its lack of transparency in foreign exchange policies and a large trade surplus with the US. The Treasury highlighted China’s increasing reliance on export-driven growth, with net exports contributing 43% of real GDP growth in Q3 2024. The report reiterated calls for greater transparency in China’s currency practices, particularly in its use of a daily fix to influence the yuan.
Other Highlights:
- Japan: Remained on the list due to a $65 billion trade surplus with the US and a 4.2% global current account surplus. Recent interventions to support the yen were noted as transparent but rare.
- Trump’s Proposed Policies: President-elect Trump has promised 60% tariffs on Chinese goods and 10%-20% tariffs on imports from other countries, regardless of currency practices.
This report signals a shift in global economic dynamics as foreign exchange policies evolve to address inflation, trade imbalances, and geopolitical tensions.
Comments
Post a Comment