KUALA LUMPUR, July 29 (Bernama) -- Bursa Malaysia rebounded to close higher on Wednesday on selective buying of defensive stocks after a volatile trading session. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said consumer products and services stocks lifted the key index higher, overcoming lingering geopolitical concerns. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 3.08 points to 1,715.56 from yesterday’s close of 1,712.48. The benchmark index, which opened 1.91 points higher at 1,714.39, moved between 1,710.79 and 1,720.59 during the day’s trading. In the broader market, gainers outstripped decliners 550 to 476, while 612 counters were unchanged, 1,129 untraded, and 48 suspended. Turnover rose to 2.96 billion units valued at RM2.48 billion from 2.94 billion units valued at RM2.56 billion on Tuesday.
Japanese household spending rose more than expected in August, signaling stronger consumer sentiment and reinforcing expectations that the Bank of Japan (BOJ) may stay on its rate-hike trajectory despite political shifts.
According to the Ministry of Internal Affairs, household spending climbed 2.3% year-on-year, surpassing forecasts for a 1.2% increase. It marked the fourth consecutive month of gains, driven by robust travel and transportation demand. On a seasonally adjusted basis, spending rose 0.6% month-on-month, beating the 0.1% estimate.
Officials said consumption recovery is gaining traction, with the government raising its assessment of consumer spending for the first time since August 2024, citing improved confidence following a tariff agreement with the US.
Analysts noted that while the ruling Liberal Democratic Party’s selection of Sanae Takaichi, a fiscal dove, as its new leader could ease rate-hike expectations, the BOJ may still tighten policy to counter yen weakness and import-driven inflation.
“The stock market rally following Takaichi’s election is expected to create wealth effects and boost household spending,” said Masato Koike, senior economist at Sompo Institute Plus.
The data offers reassurance that Japan’s domestic demand remains resilient, supporting the BOJ’s gradual normalization path amid global monetary easing trends.
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