KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
Asian Equities Cool After Three-Day Advance
Asian stocks pulled back Thursday, with the MSCI Asia Pacific Index slipping 0.2% as Japanese shares dropped 1.4% under pressure from a stronger yen. The yen gained 0.5% against the US dollar after US Treasury Secretary Scott Bessentsaid the Bank of Japan (BOJ) was lagging in tackling inflation and would likely raise interest rates.
Bessent’s Push for Fed Rate Cuts Weakens the Dollar
The dollar fell against all G-10 peers as Bessent also urged the Federal Reserve to ease policy. He argued that the Fed’s benchmark rate should be at least 1.5 percentage points lower and suggested starting with a 50 bps cut in September. His comments follow softer US inflation data earlier this week, which reinforced market expectations for a quarter-point cut next month.
Monetary Policy Outlook
Fed: The FOMC kept rates at 4.25%-4.5% in July. Analysts expect a more dovish tone in 2026, especially if Fed Chair Jerome Powell steps down when his term ends.
BOJ: Bloomberg’s latest survey shows 42% of economists expect an October hike, while a third forecast a move in January. The next BOJ policy meeting is set for Sept. 19.
White House Influence: President Donald Trump, also a critic of the Fed’s reluctance to cut, said he may announce Powell’s successor “a little bit early” and has narrowed the shortlist to three or four candidates.
Geopolitical Backdrop
US President Trump warned of “very severe consequences” if Russia’s Vladimir Putin does not agree to a ceasefire, following discussions with European leaders ahead of an upcoming meeting.
Corporate Highlights
Tencent: Shares rose after the company posted faster-than-expected sales growth — the quickest pace in four years.
Apple: Plans a major AI push with new devices including humanoid robots, a lifelike Siri, smart displays, and home-security cameras.
Cisco Systems: Issued a cautious fiscal-year outlook despite growing AI-related sales.
Market Snapshot
Stocks: S&P 500 futures flat; Topix -1.1%; ASX 200 +0.7%; Hang Seng +0.2%; Shanghai Composite +0.4%
Currencies: Dollar index -0.2%; Yen +0.6% at 146.43; Offshore yuan +0.2% at 7.1694
Crypto: Bitcoin +0.5% to $123,567.83; Ether +0.2% to $4,726.90
Bonds: US 10-year yield steady at 4.23%; Japan 10-year at 1.515%
Commodities: WTI crude +0.4% to $62.87; Gold +0.4% to $3,368.40
The combination of dovish US policy signals, potential BOJ tightening, and geopolitical tensions has set the stage for increased currency volatility while equities consolidate after a record-setting run.
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