KUALA LUMPUR, Nov 5 (Bernama) -- Bursa Malaysia closed higher, buoyed by Bank Negara Malaysia’s (BNM) decision to maintain the Overnight Policy Rate (OPR) at 2.75 per cent, alongside positive cues from Wall Street. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 19.30 points, or 1.19 per cent, to 1,635.86 from Wednesday’s close of 1,616.56. The benchmark index opened 6.72 points higher at 1,623.28, and fluctuated between an intraday high of 1,642.44 and a low of 1,622.62 during the trading session. However, market breadth was negative, with losers outnumbering gainers 723 to 497, while 466 counters were unchanged, 1,075 untraded and 10 suspended. Turnover rose to 3.74 billion units valued at RM3.61 billion compared with yesterday’s 2.81 billion units valued at RM2.57 billion.
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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