KUALA LUMPUR, Dec 12 (Bernama) -- Bursa Malaysia’s key index closed higher today on bargain hunting, in line with positive investor sentiment across regional markets, consolidating at its highest level in more than two months — a level last seen on Oct 2, 2025. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 12.42 points, or 0.76 per cent, to 1,637.81, compared with Thursday’s close of 1,625.39. The benchmark index opened 2.83 points lower at 1,622.56, thereafter edged down to an early low of 1,622.03, before staging an uptrend to an intraday high of 1,640.36 in late trading. Market breadth was positive, with gainers trouncing decliners at 743 versus 387. Another 530 counters were unchanged, 1,108 untraded, and 16 suspended. Turnover increased to 3.09 billion units worth RM2.46 billion from 2.99 billion units worth RM2.35 billion on Thursday. Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said the FBM KLCI ended higher on continued...
Fed’s Goldilocks Rate Cut Sparks Asia Market Rally
The US Federal Reserve’s latest rate cut delivered a “Goldilocks” outcome — easing conditions without turning overly dovish. For Asia, strategists say this is creating a broad relief rally across currencies, bonds, and selected equity sectors.
Dollar Weakness Lifts Asian Currencies
Analysts expect a weaker US dollar to support most Asian currencies.
The Korean won (KRW) and Indonesian rupiah (IDR) are highlighted as potential outperformers due to attractive valuations and the Fed leaving room for more cuts in 2026.
Short-Dated Bonds and High-Grade Credit Benefit Most
With the Fed injecting liquidity and easing dollar funding pressure, short-tenor Asian bonds and high-grade credit are seen as the clearest winners. Lower front-end yields usually push these assets higher.
Selective Equity Boost: Cyclicals and Exporters Lead
A softer dollar and cheaper funding favour cyclical stocks and export-driven sectors.
Financial stocks, however, may see limited upside as yield-curve compression squeezes margins.
Yen Moves Are Mild but Supported
The yen remains slightly supported, though no major move is expected with a Bank of Japan decision approaching.
Key Takeaway
The Fed’s decision supports a risk-on mood in Asia, but analysts warn that markets will stay data-dependent, especially around US inflation. For now, Asia enjoys a Goldilocks moment — a market backdrop that’s “just right.”
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