KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
South Korea’s central bank left its benchmark rate unchanged for the second straight meeting, balancing the need to support a weak economy against the risks of soaring household debt.
Policy Decision
Benchmark rate: Held at 2.50% by unanimous vote of the seven-member board.
Market expectation: 27 of 35 economists polled by Reuters predicted no change.
Growth outlook: Revised up to 0.9% for 2025 (from 0.8%), though still the slowest pace since 2020.
Why the Hold?
Mortgage debt risk: Four rate cuts since last year have accelerated household debt, raising financial imbalance concerns.
Housing market: BOK Governor Rhee Chang-yong flagged that home prices in parts of Seoul remain “still rising at a high rate.”
Global context: With the US Federal Reserve signaling a rate cut soon, analysts expect the BOK to follow, but with caution.
Market & Analyst Views
Citi Research (Kim Jin-wook): Sees a 25 bps cut in October, noting Rhee’s preference to avoid over-delivery of easing during his term (ending April 2026).
Exports: Rose for a second consecutive month in July, led by chips and car sales, with exporters rushing shipments ahead of possible higher US tariffs.
Inflation vs. easing: The sluggish recovery reduces inflation fears, but the BOK may not cut as aggressively as peers since it tightened less during the pandemic.
Outlook
Analysts expect the BOK to cautiously resume easing in Q4, balancing:
Growth risks from global trade tensions and tariffs.
Debt stability, particularly in the housing sector.
Any moves will likely be smaller and slower than global peers, reflecting Korea’s unique mix of risks.
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