KUALA LUMPUR, Dec 16 (Bernama) -- Bursa Malaysia extended its positive performance, closing higher for a fourth consecutive session, supported by improving local market sentiment underpinned by a firm domestic macroeconomic backdrop. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.59 points, or 0.28 per cent, to 1,648.31, from Monday’s close of 1,643.72. The index had opened 0.95 of a point lower at 1,642.77, and moved between 1,636.50 and 1,648.71 throughout the trading session However, on the broader market, decliners beat gainers 699 versus 408. A further 520 counters were unchanged, 1,149 untraded and 12 suspended. Turnover rose to 2.59 billion units worth RM2.27 billion from 2.50 billion units worth RM2.16 billion on Monday.
Key Takeaway: Asian markets opened mixed on Wednesday, tracking Wall Street’s pause after a record-breaking run. Investors are turning cautious amid stretched valuations and renewed talk of profit-taking in AI-driven sectors.
Market Overview
| Region / Asset | Latest Trend | Note |
|---|---|---|
| Tokyo Futures | Slight gain | Mild uptick expected |
| Sydney Futures | Flat | Limited movement |
| Hong Kong | Reopens | After public holiday |
| S&P 500 (.SPX.US) | -0.4% | Ends record streak |
| Oil | Higher | Inventory drop at U.S. hub |
| Gold | Near US$4,000 | Approaches all-time high |
| JPY/USD | Yen weaker | Lowest since February |
| EUR/JPY | Record high | Since euro’s 1999 launch |
Wall Street Pullback
The S&P 500 slipped 0.4% on Tuesday, halting a string of all-time highs after a US$16 trillion surge since April raised concerns of overheating.
Tech-related profit-taking continued as investors reassessed lofty valuations and AI-driven optimism.
Citigroup’s Chris Montagu warned that profit-taking risks are “particularly elevated for the Nasdaq,” while some analysts see signs of valuation disconnection in mega-cap tech stocks.
Currencies and Commodities
The Japanese yen weakened to its lowest level since February following Sanae Takaichi’s surprise victory as Japan’s new prime minister. The yen also hit a record low against the euro since the single currency’s inception.
Gold climbed close to US$4,000 an ounce, driven by safe-haven demand. Oil rose in early Asian trade after industry data showed a drawdown in U.S. inventories.
Central Bank Watch
Markets are eyeing monetary policy moves across the region:
New Zealand and Thailand are both expected to cut rates by 25 basis points later Wednesday to support growth.
In the U.S., Fed Governor Stephen Miran said tariffs are unlikely to derail inflation progress, suggesting scope for continued easing.
Minneapolis Fed President Neel Kashkari cautioned that aggressive rate cuts could reignite inflation.
Broader Market Sentiment
Investor optimism remains high, with AI spending driving much of the market narrative. However, analysts are increasingly comparing current conditions to the dot-com era, as massive investments in AI infrastructure raise fears of a potential bubble.
JPMorgan CEO Jamie Dimon noted the bank spends about US$2 billion annually on AI development and saves a similar amount in efficiency gains, calling it “the tip of the iceberg.”
Outlook
With Wall Street pausing and Asian markets opening cautiously, traders are watching for signs of consolidation after months of strong gains.
Focus areas:
AI sector valuations and earnings follow-through.
Regional rate cuts and monetary easing trends.
Yen weakness and its potential policy implications.
Bottom line: After an extended rally, global equities are showing fatigue — suggesting a short-term cooling phase before the next major move.
Comments
Post a Comment