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 markets are poised for a positive start on Tuesday, tracking Wall Street's rally led by technology stocks. Futures indicate gains in Tokyo, Shanghai, and Sydney, while Hong Kong remains flat. Currency markets and geopolitical developments are adding complexity to global sentiment.
Key Highlights
Wall Street Momentum
- S&P 500: Notched its 54th record close of 2024, up 0.2%.
- Nasdaq 100: Rose 1.1%, driven by Tesla (+5.9%) and a new peak for Apple.
- Dow Jones: Fell 0.3%.
- Treasuries: 10-year yields rose 2 basis points to 4.19%.
Tech Restrictions and China Focus
- The US tightened curbs on chip and AI components to China, affecting companies like SK Hynix, Samsung, and Micron.
- China Stimulus Watch: Investors await policy signals from this month’s Politburo meeting, as November’s session lacked a key economic policy readout.
Fed’s Influence
- Fed Governor Christopher Waller indicated support for a December rate cut, with swaps pricing a 70% chance of a 25-basis-point reduction.
- Key Data to Watch:
- Friday’s payroll report is expected to reveal a rebound in US hiring after recent disruptions.
- Fed Chair Jerome Powell will speak on Wednesday, providing potential insights into inflation and rate policy.
European Instability
- French markets were under pressure as Marine Le Pen pledged to topple Prime Minister Michel Barnier’s government, creating financial and political uncertainty.
- The euro fell 1.1%, reflecting concerns over France’s political turmoil.
Market Outlook
Asian Sentiment
- Positive lead from Wall Street and optimism over potential US rate cuts could boost Asian stocks.
- Hong Kong may see caution amid geopolitical tensions and chip restrictions targeting China.
"Goldilocks" Economy
- Investors are optimistic about a soft landing for the US economy, where growth supports earnings but remains weak enough to justify Fed rate cuts.
December Tailwinds
- Historically, December delivers strong performance, with the S&P 500 averaging 1.77% gains in years where it was up over 20% through November.
Investor Takeaway
- Equity Momentum: Asian markets may benefit from Wall Street’s tech-driven rally and seasonal tailwinds.
- Fed Influence: US payroll data and Powell’s remarks could shape market sentiment and confirm expectations for a December rate cut.
- Geopolitical Watch: Keep an eye on China’s policy signals and European political instability for potential risks.
A cautious yet optimistic tone is likely to dominate as investors navigate a mix of tailwinds and risks heading into the final weeks of 2024.
Comments
Post a Comment