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...
Asian equities advanced on Monday, led by Chinese stocks, as investors positioned for a dovish US Federal Reserve pivot and awaited Nvidia’s earnings later this week — a key test for lofty AI-driven valuations.
The MSCI Asia-Pacific ex-Japan Index rose 1.5%, with Chinese blue chips up 1.4% to their highest since mid-2022. The rally in China has pushed the index almost 10% higher in August, despite persistent weakness in domestic demand and corporate pricing power, highlighting the liquidity-fuelled nature of gains.
Elsewhere, Japan’s Nikkei gained 0.4%, South Korea climbed 1.1%, and Australia added 0.2%.
Fed Pivot Drives Sentiment
Federal Reserve Chair Jerome Powell’s speech at Jackson Hole bolstered expectations of monetary easing:
Futures now price an 84% probability of a 25bps cut in September, with at least 100bps of cumulative cuts by mid-2026.
The dovish tilt pressured Treasury yields, with the 10-year yield holding at 4.268% after a sharp drop on Friday.
The dollar eased, supporting commodities and EM currencies.
Still, risks loom. JPMorgan’s Bruce Kasman warned that tariffs and sticky service inflation could push core inflation toward a 4% annualised rate, challenging long-dated Treasuries. The US will also auction US$183bn in new debt this week, testing market appetite.
Nvidia: The Market’s Litmus Test
All eyes now turn to Nvidia’s earnings (Wed, Aug 27):
Consensus: 48% EPS growth on US$45.9bn revenue.
Options market signals a ~6% swing in shares post-results.
Key watchpoints: China shipment outlook and details of its deal to pay the US government 15% of certain chip revenues.
Given Nvidia’s US$4tn market cap, even modest surprises could ripple across global equities.
Adding to the policy backdrop, President Trump last week announced a US$8.9bn US stake (9.9%) in Intel at a discounted price — signalling Washington’s intent to build domestic chip capacity alongside Nvidia’s global dominance.
Currencies and Commodities
USD/JPY: The dollar steadied at ¥147.36, after sliding 1% on Friday.
EUR/USD: Firm at 1.1703, bouncing from 1.1583.
ECB: Expected to hold rates in September, though further cuts could be debated in autumn if growth weakens.
Gold: Supported by a weaker dollar, holding at US$3,365/oz.
Oil: Prices steadied as sanctions on Russian supply persist. Brent: US$67.77, WTI: US$63.78.
Investment Takeaways
China Rally: Liquidity-driven, but fundamentals remain weak; investors should be selective, focusing on policy-supported sectors.
Nvidia Earnings: A pivotal event for AI trade momentum and global equity sentiment.
Rates & FX: Fed pivot supports Asian currencies and EM inflows, but sticky US inflation could limit upside.
Commodities: Gold and oil benefit from softer dollar, but inflation data this week could spark volatility.
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