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.
Weak Payroll Data Spurs Fears of Slowing US Economy
Asian equity markets opened the week under pressure after US July payroll revisions cut 290,000 jobs off prior estimates, while the three-month average slowed sharply to just 35,000. The data reinforced fears that the US economy is cooling faster than expected and pushed traders to price in a 90% probability of a September Fed rate cut, up from 40% before the report.
Fed Independence Questioned Amid Political Noise
Concerns intensified after President Trump fired the head of Labor Statistics and prepared to appoint a new Federal Reserve governor, raising fears over the politicisation of monetary policy. Analysts noted the move “puts Fed credibility and economic data under the spotlight,” with futures now implying 65bps of easing by year-end versus 33bps pre-data.
Regional Market Reaction
Nikkei 225: -2.1%
Kospi: -0.2%
MSCI Asia ex-Japan: +0.3% (helped by selective buying)
S&P 500 futures: +0.1%
Nasdaq futures: +0.2%
Despite the weak macro tone, Wall Street earnings remain a buffer, with 63% of S&P 500 companies beating forecasts and estimated growth rising to 9.8% YoY.
Currency Moves: Dollar Retreats, Yen Surges
The dollar’s rally abruptly reversed, with the USD/JPY plunging 2.3% Friday and sliding to 147.24, while the euro rebounded to US$1.1585. The dollar index retreated to 98.65 from last week’s 100.25 peak as markets priced in aggressive easing.
Commodities: Oil Under Pressure, Gold Holds Gains
Brent: -0.6% to US$69.24
WTI: -0.6% to US$66.93
Gold: Flat at US$3,361/oz after Friday’s 2% rally
Oil’s slide followed Opec+’s surprise decision to boost September output, fully reversing last year’s 2.2m bpd cut.
Investment Takeaway:
The US jobs shock has shifted the macro narrative toward policy easing but also underscored risks of a sharper slowdown. Asian markets are likely to stay volatile this week as investors weigh Fed signals, US inflation data, and corporate earnings against the backdrop of softening global growth.
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