KUALA LUMPUR, March 10 (Bernama) -- Bursa Malaysia rebounded to end higher today with the benchmark FBM KLCI reclaiming the 1,700 psychological level, supported by improved global sentiment after US President Donald Trump signalled a potential de-escalation of the Iran conflict, alongside Malaysia’s stronger Industrial Production Index (IPI) data. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) increased 27.51 points, or 1.64 per cent, to 1,701.68 from yesterday’s close of 1,674.17. The benchmark index opened 10.68 points higher at 1,684.85, its lowest point today, and hit a high of 1,703.61 in the late afternoon session. Market breadth was positive, with gainers thumping losers 929 to 382. A total of 361 counters were unchanged, 982 untraded and 19 suspended. Turnover declined to 3.60 billion units worth RM3.75 billion from yesterday’s 5.52 billion units worth RM5.87 billion.
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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