KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
BOT’s Unexpected Move Spurs Market Rally
- The Bank of Thailand (BOT) cut its interest rate by 0.25 percentage points, surprising economists.
- The move aims to support economic growth and weaken the baht to boost exports.
- 16 out of 26 economists in a Reuters poll had expected no change in policy.
Market Reactions
- Thai stocks jumped 2%, rebounding after two consecutive sessions of losses.
- The baht remained flat, despite expectations of further rate cuts later this year.
- Other Asian markets gained:
- Philippines (+1.3%)
- Malaysia (+1.2%)
- China (+1%)
Regional Currency Movements
- Singapore dollar, Malaysian ringgit, and Indonesian rupiah fell 0.2%.
- Taiwan dollar traded flat after Taiwan revised down its 2025 GDP forecast to 3.14% from 3.29%.
- US dollar index gained 0.3%, recovering from an 11-week low.
Outlook & Future Risks
- Analysts expect one or two more rate cuts if the US imposes tariffs on Thailand or if global growth slows.
- BOT joins South Korea in easing rates, while Indonesia and the Philippines kept theirs unchanged.
- The Trump administration’s semiconductor restrictions on China remain a key global economic factor.
Summary:
- BOT unexpectedly cut interest rates by 0.25%, boosting Thai stocks by 2%.
- The baht remained stable, while regional currencies saw slight losses.
- Further rate cuts are possible, depending on global risks.
- Markets in China, the Philippines, and Malaysia also posted gains.
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