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 are expected to open lower on Friday after fresh concerns over US bank credit quality dented global risk appetite.
Wall Street Weakness Spills Over
Futures for Japan, Australia, and Hong Kong pointed lower in early Asian trading, mirroring the cautious tone on Wall Street.
The S&P 500 dropped 0.6%, dragged down by a 2.8% decline in financial stocks, while the Nasdaq 100 fell 0.4%. Contracts for US equities remained soft early Friday, underscoring persistent investor unease.
Flight to Safety: Gold and Treasuries Rally
Safe-haven assets strengthened overnight.
Gold surged 2.8% to above US$4,326 per ounce, setting a new record.
US 10-year Treasury yields fell five basis points to around 4%, while the two-year yield dropped seven basis points to its lowest since 2022.
The US dollar weakened, lifting the Japanese yen, which extended its three-day winning streak.
Banking Sector Under Pressure
Shares of US regional lenders slumped after the collapse of Tricolor Holdings, a subprime auto lender, raised contagion fears.
Zions Bancorp plunged 13% following a US$50 million charge-off tied to California Bank & Trust.
Western Alliance Bancorp fell 11% after disclosing exposure to the same borrowers.
While the market reaction highlighted fragility in the credit sector, Steve Sosnick of Interactive Brokers said the problems “seem isolated” for now, and not yet systemic.
Asian Focus: Policy and Economic Data
In Asia, Bank of Japan Governor Kazuo Ueda reaffirmed the central bank’s readiness to tighten policy if confidence in the inflation and growth outlook improves, signaling a possible near-term rate hike.
Key regional data due Friday include:
South Korea’s unemployment rate
Malaysia’s GDP
Thailand’s trade figures
US Outlook: Fed Policy and Shutdown Uncertainty
In the US, Federal Reserve Governor Christopher Waller said the central bank can continue cutting rates by 25 basis points at a time to support a weakening labor market.
However, the ongoing government shutdown—now in its 16th day—has delayed key economic reports such as the September inflation data, complicating the Fed’s policy assessment.
Bret Kenwell of eToro noted that with limited economic data, “earnings will have to drive the near-term narrative,” adding that corporate results could either “steady the ship or rock the boat.”
Oil Drops on Hopes of Russia-Ukraine Peace Talks
Crude prices fell to a five-month low after US President Donald Trump said he will meet Russian President Vladimir Putin in Budapest to discuss ending the war in Ukraine.
The announcement spurred speculation that Russian oil supplies could return to global markets, easing energy prices further.
Bottom line:
Asian markets are poised for a cautious session as investors weigh the fallout from US credit troubles, the global economic slowdown, and shifting geopolitical dynamics. Safe-haven demand remains strong, while risk appetite stays fragile.
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