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 Stocks Post Modest Gains Amid Uncertainty; Investors Eye Global Growth Concerns and Tariff Talks
Key Takeaways:
Asian Stocks Edge Up: After a three-day decline, Asian equities rebounded modestly on Wednesday, as investors looked for a clear direction amidst global economic uncertainty. Major markets like Sydney, Tokyo, and Hong Kong posted gains, with the MSCI Asia Pacific Index rising.
U.S. Economic Data Adds to Concerns: Despite a 0.2% increase in the S&P 500, weaker consumer confidence in the U.S. raised concerns about potential growth slowdowns. A surge in U.S. copper prices indicated strong demand, but broader concerns over inflation risks from Trump’s tariffs remained prevalent.
Geopolitical Tensions: Investors are grappling with rising geopolitical risks, notably related to U.S.-China trade policies and Russian involvement in the Black Sea ceasefire. U.S. President Donald Trump’s upcoming “Liberation Day” tariff announcement on April 2 is stirring unease, while market participants anticipate the impact of reciprocal tariffs between the U.S. and its allies.
Chinese Market Volatility: Chinese stocks took a breather after a strong rally, with recent AI advancementsfueling optimism, though some Wall Street analysts remain bullish about future growth. While Chinese technology stocks saw a cool-down, strategists from Morgan Stanley and Goldman Sachs foresee continued upside potential for Chinese markets as earnings revisions improve.
Rising Risks to Consumer Sentiment: A drop in consumer confidence, driven by fears of inflation and stagflation, is evident. Surveys show a rise in those expecting lower stock prices, highlighting the fragility of investor sentiment amid ongoing tariff uncertainty and economic policy concerns.
Market Movements:
S&P 500 futures edged up 0.1%, signaling modest optimism in U.S. equities.
Hang Seng futures and Japan’s Topix rose 0.6% and 0.3%, respectively.
The Australian S&P/ASX 200 gained 0.8%, indicating positive momentum.
Cryptocurrency prices saw small changes, with Bitcoin falling by 0.2% and Ether gaining 0.2%.
Commodities & Bonds:
Oil prices rose 0.3% to $69.22 per barrel after a report showed a decrease in U.S. inventories.
Gold remained near its record high but dipped slightly by 0.1%.
U.S. Treasury yields edged up to 4.33%, while other global bond yields saw minimal changes.
Outlook: As U.S. tariffs and geopolitical risks remain key concerns, investors will continue to monitor economic data and global trade policies closely. While Chinese stocks show signs of volatility, ongoing AI innovations and government support keep the outlook cautiously optimistic.
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