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.
Asian equities surged to fresh record peaks on Friday, tracking Wall Street’s rally as investors priced in a series of US Federal Reserve rate cuts that could ease borrowing costs worldwide.
Record-Breaking Gains Across Asia
Indices in Japan, South Korea, and Taiwan all touched new highs, buoyed by expectations of continued AI-driven earnings growth. Japan’s Nikkei rose 0.6%, extending its weekly gain to 3.7%, while South Korea’s market jumped 1.1% for a 5% weekly surge. China’s blue-chip index edged 0.2% higher, reaching its strongest level since early 2022.
The broad MSCI Asia-Pacific ex-Japan index climbed 1.2%, while futures signaled European shares would follow suit, with EUROSTOXX 50, FTSE, and DAX futures all up 0.3%.
Fed Rate Cuts in Focus
The latest US CPI report came in largely in line with expectations, with core prices rising 0.3% in August and 3.1% year-on-year. Economists at Citi now forecast the Fed’s preferred inflation gauge, core PCE, to hold steady at 2.9% for August — paving the way for easing.
“We continue to expect 125 basis points of cuts over the next five FOMC meetings, with growing risk that the Fed will cut below 3%,” said Veronica Clark, Citi economist.
Markets are fully pricing a 25bp cut next week to 4.00%-4.25%, with a 90% chance of two additional cuts this year. US 10-year Treasury yields have already dropped 20bps in two weeks, effectively easing mortgage costs and boosting risk appetite.
Global Ripple Effect
The dollar softened slightly, trading at 147.23 yen, while the euro held at US$1.1730 after the European Central Bankkept rates unchanged, signaling it was in a “good place” but leaving the door open for a December cut.
ECB sources told Reuters the December meeting would be the most likely moment to debate further easing, though markets currently assign just a 20% probability.
Commodities Mixed
Gold held steady at US$3,633 an ounce, just shy of this week’s record US$3,674. Oil prices slipped as the International Energy Agency warned of a record surplus in 2026, with Brent crude down 0.4% to US$66.09 and WTI easing 0.5% to US$62.07.
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