KUALA LUMPUR, June 18 (Bernama) -- Bursa Malaysia’s key index finished marginally higher, supported by strong buying interest in consumer-related counters, amid mixed performance across regional markets. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 1.40 points, or 0.08 per cent, to 1,711.39 from Tuesday's close of 1,709.99. The key index opened 12.36 points firmer at 1,722.35 and moved between 1,711.31 and 1,722.63 throughout the session. Market breadth was negative, with losers leading gainers 678 to 493, while 549 counters were unchanged, 1,016 untraded and 34 suspended. Turnover increased to 4.50 billion units worth RM3.45 billion from 3.93 billion units worth RM3.45 billion on Tuesday.
Asian equities are set to rise Thursday, tracking overnight gains on Wall Street as AI-linked megacaps fueled another round of record highs for U.S. benchmarks.
Wall Street Rally Extends on AI Optimism
U.S. stocks advanced Wednesday, led by strong demand in technology shares:
S&P 500 Index: +0.6%
Nasdaq 100: +1.2%
U.S.-listed Chinese stocks: +0.9%, ahead of mainland market reopening after Golden Week.
Nvidia (NVDA.US) led the gains after CEO Jensen Huang said demand for Blackwell chips remains “really, really high.” Cisco Systems (CSCO.US) rose as it stepped up competition with Broadcom (AVGO.US) in AI data-center networking.
UBS Global Wealth Management’s Mark Haefele said valuations remain reasonable:
“With price-earnings ratios for today’s tech giants still well below dotcom-era levels, the bull market remains intact.”
A gauge of U.S. small-cap stocks also climbed 1%, suggesting broader participation beyond mega-caps.
Asian Markets Outlook
Equity futures point to modest gains:
Japan: Higher open expected
Hong Kong: Reopens after holiday, set to rise
Australia: Flat-to-slightly positive start
South Korea: Markets closed Thursday
Key regional events today include:
Australia: Consumer inflation expectations
Philippines: Interest-rate decision
Japan: Machine tool orders
In currency markets, the yen traded at 152.66 per dollar, near its weakest since February, sparking speculation of possible intervention.
U.S. Treasuries and Commodities
10-year Treasury yield: Little changed at 4.13%, as a US$39 billion auction drew slightly weaker demand.
Bloomberg Dollar Index: Rose to the highest since August.
Gold: Extended its rally above US$4,000/oz, continuing its record-breaking run.
Corporate Developments in Asia
Alibaba (9988.HK) formed an in-house robotics team, joining the global race in AI-powered physical automation.
SoftBank Group (9984.T) agreed to acquire ABB Ltd’s industrial robots unit for US$5.4 billion.
Graphcore, a SoftBank-backed U.K. chipmaker, plans to unveil a £1 billion (US$1.3 billion) investment package in India.
Fed Outlook: More Cuts Likely, but Data-Driven
Minutes from the latest Federal Reserve meeting showed policymakers remain open to more rate cuts in 2025 but remain cautious amid sticky inflation.
Wells Fargo’s Luis Alvarado expects two more 25-basis-point cuts this year and two more next year.
Evercore’s Krishna Guha noted that AI’s impact on labor markets is now part of the Fed’s macro discussion.
“There’s no alarm about stock prices, and Fed leaders aren’t shifting focus from labor and inflation risks to market excess,” Guha said.
Market View: Tech Concentration Risks Remain
LPL Financial’s Jeff Buchbinder highlighted parallels to the 2000 dotcom bubble:
Tech now accounts for ~35% of the S&P 500, versus 33% at the 2000 peak.
However, valuations remain “more reasonable” compared to the late 1990s, supported by strong earnings and structural AI demand.
Key Takeaway
Asia looks set to mirror Wall Street’s momentum as AI enthusiasm and rate-cut expectations support sentiment. Traders will be watching China’s post-holiday market reaction, yen movements, and Fed commentary for cues on whether the current rally can sustain into year-end.
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