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 steadied on Wednesday, tracking an overnight recovery on Wall Street as a sharp selloff in global bonds and cryptocurrencies took a breather. The calmer tone helped lift risk appetite across the region.
Bitcoin reclaimed the US$90,000 level, while futures for both the Nasdaq and S&P 500 edged up 0.1%. MSCI’s broadest Asia-Pacific index outside Japan rose 0.3%, and Japan’s Nikkei advanced 0.8%.
Global Market Turbulence Eases
Markets bounced back after a rocky start to the week triggered by renewed expectations of a Bank of Japan (BOJ) rate hike, which sent global bonds tumbling and deepened the slide in digital assets.
“The moves in spreads and the yen likely reignited fears around carry trades and forced unwinding of leveraged positions,” said Kerry Craig, global market strategist at JPMorgan Asset Management.
He added that while crypto prices have often been used as a proxy for risk sentiment, broader liquidity conditions remain the real driver.
Japanese government bonds remained under pressure, with the five-year JGB yield hitting 1.38%, its highest since 2008. The 40-year yield ticked up to 3.695%, reflecting persistent expectations of BOJ tightening.
Attention Returns to the Fed
With fewer immediate catalysts, investor focus shifted back toward an expected Federal Reserve rate cut next week, which has supported equities globally.
“There’s little reason stocks won’t stay supported into the FOMC cut next week,” said Tony Sycamore, markets analyst at IG. “Mid-December typically marks a sweet spot for equity rallies.”
December has historically been a constructive month for risk assets.
Markets are also pricing in a more dovish Fed outlook, betting that White House adviser Kevin Hassett — widely reported as the frontrunner to replace Jerome Powell — would lean toward further rate cuts.
President Donald Trump said he would name his nominee early next year.
A more dovish Fed kept the US dollar under pressure, lifting the euro to US$1.1632 and sterling to US$1.32235. The dollar slipped 0.07% against the yen to 155.77.
“Hassett is dovish and closely aligned with President Trump, and his appointment could dent the perception of Fed independence — a negative for the USD,” said Kristina Clifton, senior currency strategist at CBA.
Australia Slows; Commodities Mixed
The Australian dollar briefly weakened after data showed an unexpected economic slowdown in the September quarter. It last traded flat at US$0.6566.
Oil prices steadied after Tuesday’s losses, as markets weighed fading Russia–Ukraine peace hopes against ongoing concerns of global oversupply.
Brent crude was up 0.06% at US$62.49, while US crude gained 0.07% to US$58.69.
Spot gold rose 0.2% to US$4,216.13 an ounce amid softer dollar sentiment.
Comments
Post a Comment