KUALA LUMPUR, Dec 4 (Bernama) -- Bursa Malaysia rallied to close broadly higher on Wednesday amid strong buying interests mainly in utility and technology stocks, with the benchmark index gaining 0.44 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 7.13 points to 1,614.09 from Tuesday’s close of 1,606.96. The index opened marginally higher at 1,606.97 and moved between 1,606.53 and 1,616.03 throughout the day. Advancers thumped decliners 727 to 381 on the broader market, with 522 counters unchanged, 781 untraded and 10 suspended. Turnover advanced to 3.60 billion units valued at RM3.30 billion versus 3.32 billion units valued at RM3.30 billion on Tuesday.
The Japanese yen surged past the 150 per dollar threshold, strengthening as much as 1% to 149.999, its highest level since October. This came amid growing market expectations of a narrowing yield gap between the US and Japan by next month.
Key Drivers:
- Hotter-than-expected Tokyo consumer price data spurred bets on a Bank of Japan (BOJ) interest rate hike at its December meeting.
- Liquidity was low due to the US Thanksgiving holiday, amplifying market moves.
- Reduced momentum in the “Trump trade” and waning pressure for a stronger dollar shifted focus to the yen as a target for dollar selling, according to Yujiro Goto, head of FX strategy at Nomura Securities.
Market Expectations:
- Overnight-indexed swaps show a 63% probability of a BOJ rate hike in December and a 68% chance of a Federal Reserve rate cut.
- A narrowing yield gap could bolster the yen and weaken the appeal of the carry trade, where investors borrow in yen to invest in higher-yielding markets.
As markets gear up for potential policy shifts, the yen's rally reflects heightened sensitivity to monetary policy expectations and economic data.
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