KUALA LUMPUR, Dec 12 (Bernama) -- Bursa Malaysia’s key index closed higher today on bargain hunting, in line with positive investor sentiment across regional markets, consolidating at its highest level in more than two months — a level last seen on Oct 2, 2025. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 12.42 points, or 0.76 per cent, to 1,637.81, compared with Thursday’s close of 1,625.39. The benchmark index opened 2.83 points lower at 1,622.56, thereafter edged down to an early low of 1,622.03, before staging an uptrend to an intraday high of 1,640.36 in late trading. Market breadth was positive, with gainers trouncing decliners at 743 versus 387. Another 530 counters were unchanged, 1,108 untraded, and 16 suspended. Turnover increased to 3.09 billion units worth RM2.46 billion from 2.99 billion units worth RM2.35 billion on Thursday. Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said the FBM KLCI ended higher on continued...
Key Takeaway
Japan’s real wages rose for the first time in seven months in July, supported by summer bonuses, while consumer spending posted a third straight gain. However, sticky inflation above the Bank of Japan’s (BOJ) 2% target continues to cloud the outlook and complicates rate-hike timing.
Wage Growth vs Inflation
Real Wages: +0.5% YoY in July, first positive reading since Dec 2024.
Bonuses: Special payments jumped 7.9%, providing a one-off lift.
Regular Pay: Base salaries rose 2.5%, fastest pace in seven months.
Overtime Pay: Up 3.3%, strongest since Nov 2022 — a sign of corporate activity.
Nominal Pay: Total earnings climbed 4.1% YoY to ¥419,668 (≈US$2,850).
But inflation-adjusted gains may not last without bonuses. Consumer inflation ran at 3.6%, slowing from prior months but still well above the BOJ’s 2% goal.
Consumer Spending Trends
Household Spending: +1.4% YoY in July, weaker than forecasts (+2.3%).
MoM (seasonally adjusted): +1.7% vs 1.3% expected.
Drivers: Higher electricity bills and auto expenses pushed spending up.
Weak Spots: Food and everyday essentials remain subdued due to inflation pressure.
Policy Implications
Economists say July’s wage jump came mainly from summer bonuses, not sustainable growth.
BOJ Governor Kazuo Ueda noted wage hikes are spreading beyond big firms, aided by a tight labor market.
Still, analysts caution it’s “premature” to expect an imminent BOJ rate hike, especially with global risks (US tariffs, slowdown fears) threatening corporate profits.
Investor Angle
The data paints a mixed picture: wage growth and spending are improving, but momentum depends heavily on bonuses and stimulus effects. For investors:
Positive: Higher base salaries and overtime suggest underlying labor strength.
Risks: Inflation remains sticky, slowing household purchasing power.
Watch: BOJ’s next move — timing of rate hikes could hinge on whether real wage growth sustains without seasonal boosts.
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