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
Global equities stabilized Thursday as dovish Fed commentary and smooth Japanese bond issuance calmed recent rate volatility. While China’s sell-off weighed on Asian sentiment, Europe and U.S. futures signaled resilience ahead of Friday’s payrolls.
Market Snapshot
STOXX 600: +0.3%
MSCI Asia ex-Japan: –0.2%
Nikkei 225: +1.5%
Australia ASX 200: +1%
India Sensex: +1% (post-levy cuts)
U.S. 10Y Treasury yield: 4.2% (↓)
U.S. 2Y Treasury yield: 3.6% (flat)
Brent crude: –0.6% at $67.17
Gold: –0.8% at $3,578.50 (off record highs)
Dollar Index: flat; USD/JPY 148.25; EUR/USD $1.1650
Drivers of the Rebound
Fed Rate Cut Bets: Futures now price a near-100% chance of a 25bp cut on Sept 17, supporting equities and bonds.
Japan Debt Auction: Smooth 30-year JGB issuance helped calm global bond jitters.
China Cooldown: Regulators considering market curbs triggered a 6% drop in STAR50 index, but spillover was contained.
Policy Moves Elsewhere:
India: Tax cuts to counter U.S. tariffs boosted Sensex.
Australia: Dip-buyers lifted ASX after sharp sell-off.
Analyst Commentary
MUFG (Halpenny): Fed cut bets put “modest downward pressure” on yields; China weakness hit AUD/NZD, but broader FX calm.
Deutsche Bank (Jim Reid): Notes Fed independence in focus as Trump nominates Stephen Miran; markets watching Senate testimony closely.
ING: Beige Book viewed as “bleak,” underscoring tariff risks.
IG (Sycamore): “Dip-buyers have stepped in” after recent weakness in Asia.
Risks to Watch
U.S. Payrolls (Sept 5): Critical for confirming Fed path; consensus ~75k jobs, 4.3% unemployment.
Fed Independence: Trump’s repeated pressure on Powell, moves against Fed officials, could weigh on credibility.
Oil Supply Risks: OPEC+ eyeing output hike could cap crude prices further.
China Policy Shifts: Any new curbs on speculation could pressure tech-heavy indices again.
Investor Takeaway
Near-term: Expect calm consolidation until U.S. payrolls Friday; Fed cut odds anchored.
Equities: U.S. futures positive, dip-buying theme holding in Asia-Pacific.
Bonds: Yields drifting lower; demand for long-term paper stable.
FX: USD range-bound; watch JPY if risk-off returns.
Commodities: Oil weak on OPEC+ supply concerns; gold cooling but remains elevated as a hedge.
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