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...
Asian equities staged a mild recovery on Wednesday, buoyed by dovish signals from Federal Reserve Chair Jerome Powell and solid earnings from major U.S. banks. However, renewed trade tensions between Washington and Beijing kept risk appetite in check.
Fed Pivot Speculation Reignites Market Optimism
Powell hinted that the Fed’s tightening cycle may be nearing its end, suggesting that its balance sheet reduction program—known as quantitative tightening (QT)—could soon conclude.
Markets interpreted the comments as dovish, pricing in roughly 48 basis points of rate cuts by December, with ANZ economists projecting 25bp cuts in both October and December.
The remarks came as Wall Street rebounded on upbeat bank earnings and after the IMF raised its 2025 global growth forecast, providing further relief to investors navigating a volatile macro backdrop.
Asia-Pacific Markets Rebound
The MSCI Asia-Pacific ex-Japan index rose 0.45%, while Japan’s Nikkei 225 climbed 0.8%, recovering part of the 2.6% drop in the previous session.
U.S. futures traded marginally higher, with Nasdaq and S&P 500 futures up 0.1% each.
Still, sentiment remains fragile. U.S. President Donald Trump warned that Washington is “considering terminating some trade ties with China,” even as both nations introduced new port fees on key shipping routes—a reminder of how quickly trade risks can resurface.
“Markets need to stay alert. These trade volleys tend to escalate quickly before being dialed back,” said Tony Sycamore, market analyst at IG.
Global Currencies and Commodities
The U.S. dollar weakened slightly on renewed Fed cut bets, falling 0.25% to ¥151.42 and 0.06% to 0.8009 francs. The euro edged up to US$1.1611, supported by political relief after France’s Prime Minister Sebastien Lecornu announced a suspension of controversial pension reforms until after 2027.
In commodities, spot gold extended its rally, rising 0.9% to US$4,179.80/oz, driven by safe-haven demand and rate-cut expectations.
Brent crude slipped 0.1% to US$62.33, while WTI crude eased 0.07% to US$58.66.
Investor Takeaway
Markets are regaining some footing as monetary easing hopes offset lingering trade concerns. However, traders remain cautious as geopolitical volatility and tariff risks persist.
Key watchpoints this week:
The Fed’s October FOMC meeting for confirmation of a policy shift
Developments in U.S.-China trade negotiations
Earnings results from U.S. financial and tech sectors
With risk sentiment still fragile, investors are advised to stay diversified—balancing exposure between cyclical plays benefiting from rate cuts and defensive assets like gold.
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