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 Takeaways
Most Asian currencies slid as a global bond selloff drove safe-haven flows into the dollar.
Thailand’s baht led regional losses amid deepening political turmoil after parliament dissolution.
Japan’s 30-year JGB yield surged to a record 3.255%, tracking sharp moves in Treasuries and UK gilts.
Asian equities were mixed, with China and Singapore weaker, while Thailand, South Korea, and Taiwan gained.
Indonesian protests intensified, highlighting elevated domestic political risk alongside global fiscal concerns.
Currency Moves
Thailand’s baht dropped 0.23% as the ruling Pheu Thai party pushed for snap elections following Prime Minister Paetongtarn Shinawatra’s removal. Taiwan’s dollar fell 0.15%, Indonesia’s rupiah lost 0.18%, Malaysia’s ringgit eased 0.07%, and Singapore’s dollar declined 0.06%. India’s rupee was marginally weaker at –0.01%. The yen also softened despite soaring local yields, while the US dollar index added 0.3% after a strong gain on Tuesday.
Bond Market Pressures
Japan’s 30-year JGB yield hit a historic high of 3.255%, mirroring global long-bond weakness. UK gilt yields and US Treasuries also spiked on investor anxiety over expanding fiscal deficits and heavier bond issuance. The sovereign debt rout underscored persistent concerns about government borrowing sustainability.
Equities Snapshot
China’s CSI 300 slipped 1.27% and Singapore’s market fell 0.3%, reflecting broader caution. Philippine stocks lost 0.75%, while Thailand rose 0.9% despite political turbulence. South Korea and Taiwan each gained 0.4%. Indonesia’s equities climbed 0.75% even as its currency weakened, showing selective resilience.
Domestic Political and Social Risks
Thailand’s dissolution of parliament deepened political uncertainty, clouding investor sentiment. In Indonesia, protests against rising government spending escalated into nationwide unrest, leaving at least 10 people dead. Market participants flagged concerns that foreign investors may reduce exposure built up in recent months.
Investor View
Emerging Asian markets are contending with dual shocks: global bond volatility driving dollar strength and heightened regional political risks. The September data calendar, led by US labor market reports and the Federal Reserve’s policy outlook, will be critical in shaping investor sentiment. Meanwhile, Malaysia’s central bank is expected to keep its policy rate at 2.75% on Thursday and hold steady through 2027, reflecting a cautious stance amid external headwinds.
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