KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
Asia Opens Higher as AI Sentiment Lifts Tech Stocks
Asian equities advanced on Wednesday as investors bet that the AI boom will continue to fuel megacap earnings, while global markets positioned for a potential U.S. Federal Reserve rate cut later in the day.
The MSCI Asia-Pacific Index rose 0.4%, led by Japan and South Korea, even as breadth remained mixed with more decliners than gainers in both markets.
In the U.S., the S&P 500 notched another record close (+0.2%), though nearly 400 constituents traded lower, highlighting the narrow leadership dominated by Big Tech.
AI Momentum: Nvidia Sparks Regional Tech Surge
AI-related optimism remained the key theme across global markets.
Nvidia (NVDA US) gained nearly 5% overnight, after CEO Jensen Huang unveiled new partnerships at the company’s annual GTC conference, and downplayed fears of an “AI bubble.”
SK Hynix (000660 KS) surged up to 4% in Seoul, after reporting record quarterly profit driven by AI memory demand.
Advantest (6857 JP) soared 20% in Tokyo following stronger-than-expected operating profit from its AI chip testing segment.
Five of the “Magnificent Seven” — Microsoft, Alphabet, Meta, Amazon, and Apple — are set to report between Wednesday and Thursday, representing roughly 25% of the S&P 500’s market cap.
Investors are looking to see if the massive AI infrastructure spending of the past year will translate into tangible profit growth.
💬 “Markets have a massive wall of event risk to scale this week,”said Kyle Rodda, Senior Analyst at Capital.com, referring to the Fed decision and a heavy tech earnings slate.
Fed Rate Cut in Focus
Traders overwhelmingly expect the Fed to lower rates by 25 bps to a 3.75%–4.00% range, with speculation that policymakers may also end quantitative tightening (QT) as soon as this month.
Markets anticipate limited forward guidance from Chair Jerome Powell, given the widening divide within the FOMC on the future policy path.
A dovish tone could further extend the current AI-driven risk rally, while any hawkish pushback may trigger short-term volatility across equities and currencies.
Macro & Geopolitical Updates
- Trump–Xi Summit:U.S. President Donald Trump is touring Asia and expected to meet China’s Xi Jinping later this week. Washington may halve tariffs on Chinese goods to 10% if Beijing takes stronger action against fentanyl-related exports.
- Tech Diplomacy:The U.S. is also slated to sign a tech cooperation pact with South Korea, covering AI, quantum computing, and 6G — part of a broader strategy to maintain a technological edge over China.
Corporate Watch
| Company | Highlight |
|---|---|
| Microsoft (MSFT US) | Gains 27% ownership stake in OpenAI’s for-profit arm following restructuring. |
| Apple (AAPL US) | Plans to refresh MacBook Air, iPad mini, and iPad Air with high-end displays. |
| Visa (V US) | Beat Q4 estimates as global payment volumes continue to expand. |
| Ping An Insurance (2318 HK) | 9M profit +11.5% YoY on improved investment returns and policy growth. |
| Bank of China (3988 HK) | Q3 profit +5% YoY, stable net interest margin despite soft credit demand. |
| Boyu Capital | Emerges as frontrunner for Starbucks China partnership deal. |
Market Snapshot (as of 10:56am Tokyo Time)
| Asset | Latest Move | Comment |
|---|---|---|
| S&P 500 Futures | Flat | Traders cautious ahead of Fed |
| Topix (Japan) | Flat | Gains in tech offset by banks |
| Kospi (Korea) | +0.4% | Led by SK Hynix & Samsung |
| ASX 200 (Australia) | –0.8% | Dragged by energy & miners |
| Shanghai Composite | Flat | Awaiting Fed clarity |
| Euro Stoxx 50 Futures | –0.1% | Slightly weaker open expected |
FX & Commodities
USD Index: Slightly lower (3rd day in a row)
JPY: +0.2% at 151.86 per USD
Gold: +0.6% → US$3,975/oz
WTI Crude: +0.4% → US$60.40/bbl
Bitcoin: –0.3% → US$112,465
Investor Takeaway
Global equities continue to ride the AI earnings momentum, with investors balancing optimism on technology profits against event risk from the Fed’s policy pivot.
Asia’s chipmakers and hardware suppliers stand to benefit if U.S. megacap earnings beat expectations, while a dovish Fed could extend liquidity-driven inflows into regional markets.
Focus today:
Fed rate decision & Powell’s remarks
Microsoft, Alphabet, Meta earnings (Wed)
Amazon, Apple earnings (Thu)
Trump–Xi trade developments
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