KUALA LUMPUR, Jan 7 (Bernama) -- Bursa Malaysia’s benchmark index rebounded from earlier losses to close at its intraday high on Wednesday, gaining 0.27 per cent in late trading as buying interest returned to selected heavyweights. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) advanced 4.48 points to 1,676.83 from Tuesday’s close of 1,672.35. The benchmark index opened 0.88 of-a-point lower at 1,671.47 and subsequently hit a low of 1,665.94 during the mid-morning session before gaining momentum toward closing. On the broader market, losers led gainers by 565 to 512, while some 526 counters were unchanged, 1,046 untraded, and 10 suspended. Turnover improved to 2.73 billion units worth RM2.76 billion versus Tuesday’s 2.66 billion units worth RM2.76 billion. Dealers said that investors were cautious following geopolitical developments in Asia.
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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