KUALA LUMPUR, Aug 18 (Bernama) -- Bursa Malaysia ended higher on Tuesday, outperforming most regional markets as investors continued to rotate towards commodity and plantation-related stocks, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 7.47 points, or 0.43 per cent, to 1,733.36 compared with Monday’s close of 1,725.89. The benchmark index opened 1.63 points higher at 1,727.52, and fluctuated between 1,723.60 and 1,734.53 throughout the day. On the broader market, losers outpaced gainers 762 to 438, while 576 counters were unchanged, 1,075 untraded and 16 suspended. Turnover expanded to 3.74 billion units valued at RM2.91 billion from 3.45 billion units valued at RM2.74 billion on Monday.
Asian equities began the week on a subdued note as high U.S. Treasury yields tested Wall Street's lofty valuations, keeping the U.S. dollar near multi-month highs.
Market Performance:
- MSCI Asia-Pacific Index dipped 0.2% but remains 16% up for the year.
- Japan’s Nikkei slid 0.9%, still boasting a 20% annual gain.
- Chinese blue chips rose 0.3%, with most of their 16% yearly gain achieved after Beijing’s September stimulus promises.
- South Korea's index edged up 0.3% but is down 9% for the year, weighed by political uncertainties and events like Jeju Air’s recent plane crash.
Global Futures:
- EUROSTOXX 50 futures gained 0.1%.
- U.S. futures saw slight declines, with S&P 500 and Nasdaq futures down 0.1%.
Economic Drivers and Concerns
U.S. Treasury Yields:
- Yields on 10-year Treasuries are near eight-month highs at 4.631%, up 75 basis points for the year.
- Rising yields reflect revised expectations of less restrictive monetary policy, raising concerns about potential impacts on corporate earnings in 2025.
Dollar Strength:
- The U.S. dollar gained 6.5% against major currencies in 2024.
- The euro dropped over 5% this year, standing at $1.0427, near a two-year low.
- The dollar hovered near a five-month peak against the yen at 157.79.
Gold and Oil:
- Gold prices, impacted by dollar strength, remain up 28% this year at $2,624/oz.
- Brent crude and U.S. crude stayed flat, reflecting ongoing concerns over demand, particularly from China.
Outlook and Key Events
Data to Watch:
- China’s PMI factory surveys (Tuesday).
- U.S. ISM survey for December (Friday).
Upcoming Policy Shifts:
- President-elect Donald Trump is set to announce 25 executive orders after his Jan. 20 inauguration, addressing issues such as immigration, energy, and crypto policy.
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