KUALA LUMPUR, July 30 (Bernama) -- Bursa Malaysia's key index closed at an intraday high today, supported by continued buying interest even as renewed geopolitical tensions and a weaker overnight lead from Wall Street following the US Federal Reserve's (Fed) decision to stand pat on interest rates weighed on broader sentiment. The Fed has decided to hold rates steady for the fifth consecutive meeting, with the Federal Funds Rate unchanged between 3.50 per cent and 3.75 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.84 points to 1,720.40 from yesterday’s close of 1,715.56. The benchmark index, which opened 1.14 points lower at 1,714.42, hit its lowest level of 1,710.69 in early trade before gaining momentum for the rest of the day. However, the broader market was negative with losers outpacing gainers 581 to 411, while 612 counters were unchanged, 1,173 untraded, and 87 suspended. Turnover declined to 2.49 billion units valued at RM2.25 billion from ...
Markets React Positively to Trade Truce
Asian equities rose on Tuesday after U.S. President Donald Trump extended a 90-day pause on tariffs with China, removing a key near-term risk for investors ahead of a closely watched U.S. inflation report.
The MSCI Asia-Pacific Index gained 0.4%.
Japan’s Nikkei 225 surged to a record high as trading resumed after a public holiday.
The U.S. dollar edged lower, while gold climbed 0.4%.
The tariff truce pushes the deadline to November 10, avoiding an immediate hike in duties on Chinese imports such as rare earth magnets and certain technologies. “All other elements of the Agreement will remain the same,” Trump said in a Truth Social post.
Focus Turns to US Inflation Data
Attention now shifts to July’s Consumer Price Index (CPI) report, expected later Tuesday. Economists project a 0.3% rise in core CPI, which strips out food and energy.
Markets are pricing in about a 90% probability of a September Fed rate cut, with two reductions expected by year-end. However, a hotter-than-expected CPI print could temper those expectations.
Chris Larkin of E*Trade cautioned that market reactions could be exaggerated if inflation surprises to the upside. Andrew Brenner of NatAlliance Securities, however, downplayed the significance, saying, “The CPI will not be good… The bigger question is, does it matter? We think not.”
Global Policy and Political Developments
The Federal Reserve is considering new leadership, with vice chairs Michelle Bowman and Philip Jefferson, and Dallas Fed president Lorie Logan among potential candidates for the chair position in 2026.
Trump appointed EJ Antoni, chief economist of the Heritage Foundation, to head the Bureau of Labor Statistics after dismissing the previous leader earlier this month.
Australia’s central bank is expected to cut interest rates for the third time this year amid easing inflation pressures.
Other Market Movers
Gold prices steadied after Trump clarified bullion imports will not face U.S. tariffs, though formal details are pending.
West Texas Intermediate crude traded flat.
Bitcoin hovered near US$118,949, while Ether rose 0.5%.
Key Takeaways
Tariff Truce Boosts Sentiment – Trump’s extension of the U.S.–China tariff pause until November offers short-term relief to markets.
Inflation in Focus – July CPI data could influence the Fed’s September decision, with rate cuts still largely priced in.
Political Moves at the Fed – Several top policymakers are under consideration for the Fed chair role when it opens next year.
Central Bank Divergence – The Reserve Bank of Australia is expected to ease rates, while the Fed’s stance hinges on incoming inflation data.
Stable Commodities – Gold and oil prices remain steady, while cryptocurrencies see minor gains.
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