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...
Key Takeaways for Investors
Ambiguous US jobs data has not clarified whether the Fed will cut in December.
Tech-led volatility is back, with Nvidia’s strong earnings unable to support broader sentiment.
Asia-Pacific equities face renewed pressure, posting their worst weekly decline since April.
Dollar strength persists, especially against commodity currencies, while yen intervention risks rise.
Oil weakens, reflecting geopolitical uncertainty and shifting demand expectations.
Asian markets slumped on Friday, extending a global rout after US jobs data delivered more questions than clarity on the Federal Reserve’s next move. A sharp reversal in tech stocks — despite Nvidia’s standout earnings — reignited risk aversion across equities.
Wall Street endured one of its most volatile sessions in months as worries over stretched tech valuations resurfaced. The Nasdaq saw its widest intraday swing since April 9, when President Donald Trump’s “Liberation Day” tariffs rattled investors.
The September payrolls report initially appeared strong, with hiring far outpacing expectations. But a higher unemployment rate and downward revisions to previous months clouded the signal for Fed policymakers, who must decide in December whether to cut rates again. Treasury futures now imply a 40% chance of a rate cut, up from 30% a day earlier — but skepticism remains with the next jobs report due only after the Fed meeting.
The uncertainty triggered a broad selloff. MSCI’s Asia-Pacific ex-Japan index dropped 1.8%, bringing weekly losses to 3%, the worst since early April. Japan’s Nikkei fell 1.8%, South Korea’s Kospi plunged more than 3%, and Taiwan equities slid 2.7%. China and Hong Kong markets were also hit, with declines of 1.1% and 1.7%, respectively.
“Nvidia delivered exceptional results and the jobs report was arguably as good as markets could have hoped,” said Kyle Rodda of Capital.com. “But momentum simply wasn’t there. Even two positive events couldn’t break the bearish grip.”
Fed Caution Adds to Market Jitters
Federal Reserve officials overnight emphasised risks to financial stability, signalling reluctance to rush into further easing. Cleveland Fed President Beth Hammack warned that cutting too soon carries significant downside risks, while Governor Lisa Cook flagged the potential for sharp asset price corrections.
Currencies & Commodities
The dollar strengthened against risk-sensitive currencies, hitting fresh multi-month highs versus the Australian and New Zealand dollars. The yen briefly firmed after Japanese Finance Minister Satsuki Katayama said FX intervention was possible, though it remained near a 10-month low ahead of a ¥20 trillion stimulus package announcement.
Japan’s core inflation reading of 3% in October kept expectations for a near-term BoJ rate hike alive.
Treasuries stabilized after an overnight rally, with the 10-year yield near 4.10%.
Oil extended losses amid geopolitical developments, with WTI down 1% to US$58.38, on track for a 2.8% weekly decline. Gold eased to US$4,069 an ounce.
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