KUALA LUMPUR, June 18 (Bernama) -- Bursa Malaysia’s key index finished marginally higher, supported by strong buying interest in consumer-related counters, amid mixed performance across regional markets. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 1.40 points, or 0.08 per cent, to 1,711.39 from Tuesday's close of 1,709.99. The key index opened 12.36 points firmer at 1,722.35 and moved between 1,711.31 and 1,722.63 throughout the session. Market breadth was negative, with losers leading gainers 678 to 493, while 549 counters were unchanged, 1,016 untraded and 34 suspended. Turnover increased to 4.50 billion units worth RM3.45 billion from 3.93 billion units worth RM3.45 billion on Tuesday.
Global Rally Sets the Tone
Asian equities looked set to extend a worldwide rally on Friday after US inflation data and a cooling labor market reinforced expectations that the Federal Reserve will cut rates next week.
Futures for Japan, Australia, and Hong Kong all pointed higher following record closes for the S&P 500 and Nasdaq 100 overnight. A global stocks gauge also notched a fresh high. US equity contracts were flat in early Asia trade.
Tech Boost in US Markets
Microsoft gained in post-market trading after striking a new agreement with OpenAI, while Adobe rose on upbeat revenue guidance. Hyundai, meanwhile, flagged delays at a US battery plant due to labor shortages following an immigration raid.
Inflation and Jobs Data Pave the Way for Fed Easing
The August US consumer price index showed core inflation — excluding food and energy — rose 0.3% month-on-month and 3.1% year-on-year, in line with forecasts. At the same time, jobless claims spiked to their highest in nearly four years, underscoring labor market weakness.
“Inflation is relatively calm, which gives the Fed the flexibility to focus more on stemming ongoing weakness in the labor market,” said Skyler Weinand of Regan Capital, who expects a 25bps cut next week, with two more by year-end.
Treasuries rallied, with 10-year yields slipping two basis points. The dollar softened, while gold briefly hit an inflation-adjusted record high before retreating.
Asia’s Data in Focus
Regional investors will be watching Japan’s industrial production, India’s inflation print, and potential releases of China’s money supply and loan growth figures through Sept. 15.
Commodities and Oil
Oil prices broke a three-day winning streak, with a deteriorating demand outlook outweighing concerns over geopolitical supply risks.
Rate Cut Outlook
Markets now price in the equivalent of two to three Fed cuts by year-end. While some policymakers may raise the prospect of a 50bps “emergency” cut, most analysts see a measured 25bps reduction next week.
“The labor market is still the main story,” said Ellen Zentner of Morgan Stanley Wealth Management. “Today’s CPI wasn’t hot enough to distract the Fed from the softening jobs picture.”
PIMCO’s Tiffany Wilding added: “We still expect 25bps next week, though 50 will likely be discussed. We continue to look for 75bps of total cuts this year.”
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