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.
Asian and European stocks climbed on Tuesday, buoyed by Wall Street’s overnight surge led by tech stocks, while the US dollar softened after Monday’s gains.
Market Highlights
Asian Markets
- Japan’s Nikkei 225 rose 1.91%, driven by tech-sector strength.
- The MSCI Asia Index (ex-Japan) gained 1.16%, while Australia's benchmark hit an all-time high, ending up 0.56%.
European Markets
- Early trading saw the Stoxx 600 up 0.62%, with France’s CAC 40 advancing 0.94% after underperforming on Monday due to political instability.
US Futures
- Both S&P 500 and Nasdaq futures remained flat after reaching record highs on Monday.
- Key tech stocks:
- Meta Platforms surged nearly 19%.
- Tesla jumped 12% but dipped 1% in post-market trading following a Delaware court ruling against Elon Musk's compensation package.
Currency Movements
- The dollar index fell 0.15%, while the euro rebounded 0.24% to $1.0524 and the pound climbed 0.27% to $1.2692.
- The Chinese yuan slid to a 13-month low of 7.3145 per dollar, pressured by the threat of new US tariffs.
Key Factors
Federal Reserve Policy:
- Fed Governor Christopher Waller signaled support for a rate cut on Dec 18, increasing market expectations for a cut to 75%, up from 66% the previous day.
- Traders anticipate a slower pace of cuts post-December, with the next likely in March 2025.
US Data:
- Better-than-expected US manufacturing data boosted the dollar earlier.
- JOLTS job openings data and Friday’s monthly payroll report will shape Fed decisions.
Global Trade:
- Tariff threats from President-elect Donald Trump against BRICS nations, including China, have added uncertainty.
Commodities
- Gold rose to $2,645, rebounding slightly after retreating from its all-time high in October.
- Oil prices climbed, with Brent crude up 1.03% to $72.57 per barrel, ahead of the Opec+ meeting.
Analyst Insight
Timothy Graf, head of macro strategy at State Street, highlighted resilience in companies with strong balance sheets, noting that recent market trends are favoring such stocks, while riskier assets like cryptocurrencies have underperformed.
Takeaway
The rally in Asian and European markets, along with a softer dollar, reflects global optimism spurred by tech-driven gains in the US. However, traders are keeping a close eye on US economic data and geopolitical developments, particularly tariff threats and Fed policy signals.
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