KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
South Korea’s central bank left its benchmark interest rate unchanged at 2.50% on Thursday, in line with market expectations, while warning of “significant uncertainties” stemming from rising trade tensions with the US and tepid domestic demand.
Key Decision Highlights
Interest Rate: Held at 2.50%, matching consensus from all 33 economists surveyed by Reuters.
Monetary Stance: Maintains an accommodative policy path to support growth, despite elevated household debt.
Key Concern: Rising trade threats from the US and slow domestic recovery.
“There are significant uncertainties concerning developments in trade negotiations with the US, and the pace of domestic demand recovery,” said the Bank of Korea (BOK).
Trade Tensions in Focus
US President Donald Trump’s new tariff plan, effective August 1, has heightened anxiety across Asia. Export-heavy economies like South Korea could face serious headwinds as global supply chains adjust.
Household Debt & Housing Market
The BOK remains cautious about financial imbalances:
Household debt is rising rapidly.
Housing prices in Seoul and surrounding areas are heating up again.
Authorities are reviewing macro-prudential tools such as tighter mortgage regulations.
What’s Next?
Market Expectation: Another 25bps rate cut expected later this year, possibly two.
Policy Support: South Korea’s government recently approved a second supplementary budget, including cash handouts to boost consumer spending.
BOK Outlook: Governor Rhee Chang-yong will provide more details at a press conference (streamed live via YouTube).
Expert View:
“With growth set to remain weak, we think the BOK will resume easing later this year,”said Gareth Leather, Senior Asia Economist at Capital Economics.
Investor Insight:
The BOK is in a delicate balancing act — supporting growth while managing debt risk. Traders should watch for:
Rhee’s upcoming press conference for forward guidance
Further fiscal stimulus announcements
US-South Korea trade developments heading into August tariff implementation
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