KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
Japanese equities extended gains on Tuesday, buoyed by expectations of continued fiscal stimulus under incoming Prime Minister Sanae Takaichi, whose election pushed the yen lower and lifted long-term bond yields.
The Nikkei 225 Index rose 0.6% to a new record high after surging 4.8% on Monday, driven by strength in AI and semiconductor stocks following AMD’s blockbuster US$100 billion chip deal with OpenAI. The yen held near 150.5 per dollar, while Japan’s 30-year government bond yield climbed to a record 3.315% ahead of a key auction.
Global investors continued to pile into risk assets, with U.S. stocks closing at record highs overnight and the S&P 500extending its seven-session winning streak. However, futures slipped slightly after President Donald Trump reiterated that government talks on healthcare would only resume once the shutdown ends.
Market Snapshot
| Asset | Latest | Chg |
|---|---|---|
| Nikkei 225 | +0.6% | New record high |
| Topix | +0.4% | — |
| S&P 500 Futures | -0.2% | 6,740 est. |
| 10Y JGB Yield | +1 bps | 1.69% |
| JPY/USD | 150.49 | Weakening |
| Gold (Spot) | US$3,994/oz | Near record |
| Bitcoin | US$124,948 | -0.2% |
Market Themes
• AI Momentum Remains Strong
Analysts described the AI-driven rally as “relentless,” with Louis Navellier of Navellier & Associates noting that “semiconductors are on fire.” Monday’s AMD-OpenAI deal follows Nvidia’s US$100 billion AI investment plan, further fueling optimism across chipmakers.
• Haven Demand Lifts Gold, Bitcoin
Political uncertainty — including the U.S. shutdown and a French leadership crisis — pushed gold and bitcoin to record levels as investors sought safe-haven assets.
• Japan’s Fiscal Outlook in Focus
Bond traders are bracing for potential weakness in Japan’s 30-year bond auction, amid growing fiscal concerns. Sumitomo Mitsui Trust’s Katsutoshi Inadome said “fiscal deterioration and downgrade risks are pushing yields higher.”
• Volatility Spills Over
Goldman Sachs warned that volatility in Japan’s long-dated bonds could extend to the U.S. and U.K. markets, given the global sensitivity to fiscal policy shifts.
Corporate Highlights
LG Electronics India IPO: Anchor investors include Abu Dhabi, Norway, Singapore SWFs, BlackRock, and Fidelity International.
Ford Supply Disruption: A major supplier fire is expected to impact production for months.
Investor Takeaway
Japan remains the region’s top outperformer, fueled by AI optimism and policy continuity. However, rising yields and fiscal uncertainty warrant caution. Meanwhile, global risk sentiment stays resilient despite geopolitical headwinds — underscored by gold nearing US$4,000 and bitcoin at new highs.
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