KUALA LUMPUR, July 29 (Bernama) -- Bursa Malaysia rebounded to close higher on Wednesday on selective buying of defensive stocks after a volatile trading session. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said consumer products and services stocks lifted the key index higher, overcoming lingering geopolitical concerns. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 3.08 points to 1,715.56 from yesterday’s close of 1,712.48. The benchmark index, which opened 1.91 points higher at 1,714.39, moved between 1,710.79 and 1,720.59 during the day’s trading. In the broader market, gainers outstripped decliners 550 to 476, while 612 counters were unchanged, 1,129 untraded, and 48 suspended. Turnover rose to 2.96 billion units valued at RM2.48 billion from 2.94 billion units valued at RM2.56 billion on Tuesday.
Key Takeaway:
China’s manufacturing sector showed signs of stabilization in June, driven by improved domestic demand following the temporary US-China tariff truce. The latest Caixin PMI print of 50.4 beat expectations and marked the first return to expansion territory in three months.
What You Need to Know:
Caixin Manufacturing PMI (June):
Actual: 50.4
Forecast: 49.3
Prior: 48.3
First post-truce reading; signals moderate recovery in private manufacturing activity.
Survey Details:
Conducted by Caixin and S&P Global, this index focuses on small- and medium-sized, export-driven firms.
Contrasts with the official PMI, which remains below 50, reflecting persistent caution in larger SOEs.
Macro Context:
In mid-May, Beijing and Washington agreed to a 90-day reduction in tariffs, reviving trade flows.
Supply chains showed improvement, while domestic demand picked up — though external demand remains weak.
Economist Commentary:
“With tensions de-escalating, we expect the recovery will be sustained,” said Zhaopeng Xing, Senior Strategist at ANZ.
Policy focus is expected to shift from short-term stimulus to long-term reforms in H2 2025.
Market Implications:
| Asset Class | Directional View | Insight |
|---|---|---|
| CNY/USD | Stable to Mildly Strong | PMI beat and trade truce ease downward pressure on yuan. |
| China A-Shares | Positive Bias | Manufacturing rebound supports near-term earnings outlook. |
| Commodities | Supportive for metals | Demand pickup may lift industrial metals, especially copper and steel. |
| Rates | Neutral to Bearish Bias | Stronger data reduces urgency for near-term policy easing. |
Outlook: Slow but Steady Recovery
While risks remain — particularly around external demand fragility and the short-term nature of the tariff truce — June’s Caixin data suggests a bottoming out in private-sector manufacturing. Global banks such as BofA and Citi have started revising China 2025 GDP forecasts upward, though consensus still sits below the official 5% growth target.
Expect policymakers to lean less on stimulus and more on structural adjustments in H2 as confidence rebuilds — assuming geopolitical risks remain contained.
Bottom Line:
China’s manufacturing sector is showing early signs of life after a bruising trade war. If the truce holds, and domestic demand continues to recover, it may mark a turning point in Asia’s broader industrial cycle.
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