KUALA LUMPUR, Dec 16 (Bernama) -- Bursa Malaysia extended its positive performance, closing higher for a fourth consecutive session, supported by improving local market sentiment underpinned by a firm domestic macroeconomic backdrop. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.59 points, or 0.28 per cent, to 1,648.31, from Monday’s close of 1,643.72. The index had opened 0.95 of a point lower at 1,642.77, and moved between 1,636.50 and 1,648.71 throughout the trading session However, on the broader market, decliners beat gainers 699 versus 408. A further 520 counters were unchanged, 1,149 untraded and 12 suspended. Turnover rose to 2.59 billion units worth RM2.27 billion from 2.50 billion units worth RM2.16 billion on Monday.
Key Takeaway
Asian stocks recovered on Thursday after Federal Reserve officials hinted at upcoming rate cuts, calming nerves from a bond market selloff. Softer U.S. jobs data also reinforced expectations of easing.
Market Snapshot
MSCI Asia ex-Japan: +0.5%
Australia (ASX 200): +0.7%, rebounding from worst drop since April
Japan (Nikkei 225): +1.2% at open
China (Shanghai Composite): –0.4%, tracking third straight decline on regulatory cooling measures
Driving Factors
Fed Support for Cuts:
Fed Governor Christopher Waller signaled backing for rate cuts in coming months.
Stephen Miran (Trump’s Fed Board nominee) emphasized commitment to central bank independence.
Jobs Data: Weak JOLTS job openings reinforced bets on a September cut.
Beige Book: Painted a mixed U.S. economic outlook, with tariff-related price risks noted.
Bond & Currency Moves
U.S. Treasuries:
10-year yield at 4.2129% (vs. 4.211% prior close)
2-year yield at 3.6166% (vs. 3.612% prior close)
Currencies:
USD/JPY: 147.98 (–0.1%)
EUR/USD: Flat at 1.1657
DXY: Unchanged at 98.153
Commodities
Brent crude: –0.5% at USD 67.29/bbl
Gold: –0.2% at USD 3,552.49/oz, after record high on Wednesday
Analyst Commentary
IG’s Tony Sycamore: Dip-buyers view September weakness as an opportunity, with economic resilience supporting equities.
ING Analysts: Beige Book was “bleak” and “littered with tariff warnings,” underscoring Fed concerns.
Investor Watch
Equities: Fed dovish tilt supports near-term rebound; watch Chinese markets as regulatory pressure weighs.
Bonds: Yields remain near highs; upcoming JGB auction to test global demand for long-dated debt.
FX: Dollar range-bound; yen strength limited by U.S. rate cut expectations.
Commodities: Oil and gold softening after recent highs — caution on volatility ahead of U.S. payrolls.
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