KUALA LUMPUR, July 29 (Bernama) -- Bursa Malaysia rebounded to close higher on Wednesday on selective buying of defensive stocks after a volatile trading session. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said consumer products and services stocks lifted the key index higher, overcoming lingering geopolitical concerns. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 3.08 points to 1,715.56 from yesterday’s close of 1,712.48. The benchmark index, which opened 1.91 points higher at 1,714.39, moved between 1,710.79 and 1,720.59 during the day’s trading. In the broader market, gainers outstripped decliners 550 to 476, while 612 counters were unchanged, 1,129 untraded, and 48 suspended. Turnover rose to 2.96 billion units valued at RM2.48 billion from 2.94 billion units valued at RM2.56 billion on Tuesday.
Key Takeaway
Japan’s economy grew 2.2% annualised in Q2 — more than double the initial estimate — thanks to stronger consumer spending and inventories. But with Trump’s tariffs and political uncertainty after PM Ishiba’s resignation, investors should watch if this momentum can last into Q3.
What Drove the Upgrade
GDP: Revised to +2.2% annualised (vs. +1.0% initially).
Quarter-on-quarter: +0.5% (up from +0.3%).
Private consumption: +0.4% (was +0.2%). Boost came from restaurants, game sales, and corporate spending.
Capital expenditure: +0.6% (revised down from +1.3%).
External demand: Added 0.3 ppt, same as earlier estimate.
Domestic demand: Contributed 0.2 ppt (vs. drag of –0.1 ppt previously).
The Risks Ahead
Tariffs bite: Analysts warn US tariffs could hit exports sharply in Q3, weakening momentum.
Consumer strength shaky: Economists say it’s “difficult to expect” household spending to offset export declines.
Political uncertainty: PM Shigeru Ishiba’s resignation clouds BOJ policy direction. A potential successor favoring looser monetary policy may delay rate hikes.
Trade deal relief: Tokyo and Washington signed a tariff-cutting deal on autos and other products, offering some cushion for exporters.
Investor Takeaway
Japan’s Q2 rebound is encouraging, showing resilience in domestic demand. But with tariffs threatening exports and leadership changes adding uncertainty, Q3 GDP will be the real test.
For investors:
Equities: Consumption-focused sectors (retail, leisure, services) could benefit if spending holds.
Exports: Automakers may face pressure despite new tariff relief.
FX: Political shifts + BOJ caution = continued yen weakness.
👉 Keep an eye on July–September GDP data. It will reveal whether Japan’s growth momentum is sustainable or just a temporary boost from bonuses and spending.
Comments
Post a Comment