KUALA LUMPUR, June 12 (Bernama) -- Selected blue-chip counters trading at attractive valuations helped Bursa Malaysia close higher on Friday, despite cautious market sentiment driven by developments in West Asia, volatility in crude oil prices and uncertainty over the global interest rate outlook. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 4.10 points or 0.24 per cent to 1,683.63 compared with Thursday's close of 1,679.53. The key index opened 5.34 points stronger at 1,684.87 earlier today and moved between 1,679.72 and 1,685.39 throughout the session. Market breadth was negative, with losers leading gainers 533 to 479, while 561 counters were unchanged, 1,130 untraded and 33 suspended. Turnover fell to 2.79 billion units worth RM2.31 billion from 3.32 billion units worth RM2.88 billion yesterday.
Markets in Asia were broadly lower on Wednesday, dragged down by continued weakness in tech stocks and rising geopolitical and policy uncertainty. Investor focus is increasingly shifting toward the upcoming Jackson Hole symposium, which could provide fresh signals on the US Federal Reserve’s policy stance.
Tech Rout Spills Into Asia Amid Heightened US Policy Scrutiny
MSCI Asia-Pacific ex-Japan Index slipped 0.47%, mirroring the overnight tech-led downturn on Wall Street.
Japan’s Nikkei 225 fell 1.2%, while China’s CSI 300 lost 0.5%, reflecting risk-off sentiment.
The sell-off follows revelations that Nvidia and AMD have agreed to give 15% of their China revenue to the US government, while talks emerged on the US acquiring a 10% stake in Intel.
Growing signs of US government intervention in the semiconductor space have unnerved investors, sparking concerns over market distortions and valuation pressures.
“These developments signal that the US government is heading in a concerning and more interventionist direction,” said Tony Sycamore, IG Market Analyst.
Jackson Hole in Focus: Rate Cut Expectations Run High
Investors are now laser-focused on the Kansas City Fed’s annual Jackson Hole Symposium (Aug 21–23), where Fed Chair Jerome Powell is expected to speak on Friday.
With markets nearly fully pricing in a September rate cut, the tone of Powell’s speech could reinforce or recalibrate dovish expectations.
“Given the conflicting signals between US CPI and PPI, it’s premature to declare the direction of policy. Much depends on whether the Fed sees more risk in inflation or labor weakness,” noted Vishnu Varathan, Head of Macro Research at Mizuho.
Geopolitical Risks Cloud Sentiment Despite Ukraine Talks
A trilateral meeting between President Trump, Ukraine’s Zelensky, and European allies concluded without breakthroughs, although Trump pledged US support in securing Ukraine’s sovereignty.
Comments hinting at potential US air support—but no ground troops—add a layer of uncertainty to already fragile global sentiment.
Meanwhile, oil prices rebounded modestly amid speculation that a peace agreement could loosen sanctions on Russian oil, expanding global supply.
FX and Commodities Market Overview
US Dollar Index firmed slightly, pressuring the euro (-0.13%) to $1.1633 and GBP (-0.16%) to $1.3470.
NZD eased 0.17% to $0.5885 ahead of an anticipated RBNZ rate cut later today.
Spot gold was marginally lower at $3,312.89/oz, while Brent crude climbed 0.46% to $66.09, and WTI rose 0.6% to $62.72.
Outlook: Choppy Near-Term Ahead of Macro Catalysts
With multiple headwinds—from a tech pullback to evolving geopolitical dynamics—Asian markets are likely to remain range-bound ahead of Powell’s Jackson Hole speech. Investors should remain tactically positioned, especially in rate-sensitive sectors and currencies.
⚠️ Key Watch: Guidance from Jackson Hole, fresh macro data, and Fed commentary will drive short-term volatility. Defensive positioning and diversified exposure remain prudent.
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