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
Global markets kicked off the week higher as weak U.S. jobs data reinforced expectations for a Federal Reserve rate cut this month. Meanwhile, Japan’s political scene was shaken by Prime Minister Shigeru Ishiba’s resignation, sending the yen lower and spotlighting uncertainty over the Bank of Japan’s next policy steps.
U.S. Rate Cuts in Focus
August jobs report showed far fewer hires than expected.
Markets have fully priced in a 25 bps Fed rate cut this month, with a slim 8% chance of a larger 50 bps move.
Traders expect nearly 70 bps of easing by year-end.
S&P 500 futures gained 0.25% in Asian trading after last week’s record highs.
Investor focus now shifts to U.S. inflation data (Thursday), which could influence the Fed’s tone.
Yen Slumps After Ishiba Exit
PM Shigeru Ishiba resigned Sunday, sparking uncertainty in the world’s fourth-largest economy.
Investors are watching if successor candidates push for looser fiscal/monetary policy, with LDP veteran Sanae Takaichi a potential frontrunner.
The yen dropped 0.6% to 148.39 per dollar, while the Nikkei rose 1% in early trade.
Analysts expect near-term yen weakness, but stock performance depends on leadership clarity.
Market Moves & Sentiment
U.S. Treasuries: Yields slipped to five-month lows on safe-haven buying.
Gold: Hovering near a record at US$3,588/oz, up 37% YTD.
Currencies: Euro eased to US$1.1708, sterling steady at US$1.3489.
Political risk in Europe also in focus: France’s PM Bayrou faces a likely lost confidence vote.
Bottom Line
The global market narrative is now dominated by rate cut optimism in the U.S. and political turbulence in Japan and Europe. For investors, that means:
U.S. equities could stay supported unless inflation surprises to the upside.
Yen weakness may provide a short-term tailwind for Japanese exporters.
Gold continues to shine as a hedge against both monetary easing and geopolitical uncertainty.
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