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...
Emerging Asian currencies weakened on Friday, tracking a stronger US dollar after the Federal Reserve signaled a slower, more measured pace of monetary easing.
Stocks Cool Off
The MSCI EM Asia equities index — dominated by China, Taiwan, and South Korea — slipped just below a four-year high.
Singapore’s Straits Times Index dropped for the sixth straight session after hitting a record high last week.
Taiwan and South Korea stocks also pulled back from record levels reached on Thursday.
Markets had rallied sharply ahead of the Fed decision on hopes for further rate cuts. Analysts still see easier US policy supporting risk appetite, but valuations in Asia’s major markets are starting to look stretched.
Currency Moves
An MSCI index of EM currencies fell for the second day after touching a 10-week high earlier in the week.
Malaysia’s ringgit: weakest in a week.
Indonesia’s rupiah: hit a four-month low, down ~1.5% since Finance Minister Sri Mulyani’s dismissal on Sept 8. A surprise rate cut midweek added further pressure.
South Korea’s won: near a four-day low.
Taiwan dollar: slipped from a one-month high.
Thai baht: weaker at 31.85 per USD, down 0.5% this week. The government has pledged measures to ease currency strength to help exports and tourism.
Indonesia in Focus
Despite rupiah weakness, Jakarta stocks surged past the 8,000 mark this week, headed for their best performance in five weeks.
The rally followed Bank Indonesia’s surprise rate cut, which boosted equities but raised concerns about fiscal discipline and central bank independence.
Outlook
Analysts still expect the dollar to face downward pressure in the near term, given the Fed’s easing path. But for now, Asian currencies remain on the defensive while regional equities take a breather from record highs.
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