KUALA LUMPUR, June 3 (Bernama) -- Bursa Malaysia’s benchmark index reversed earlier gains to end lower on Wednesday, weighed down by losses in telecommunications and banking sectors, despite a broadly positive performance across Asian markets. Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said the local market remains under pressure amid lingering concerns over geopolitical tensions, elevated oil prices and uncertainty surrounding the global interest rate outlook. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 10.33 points, or 0.61 per cent, to finish at its intraday low of 1,672.74 compared with Friday’s close of 1,683.07. The local bourse resumed trading after being closed on Monday and Tuesday for public holidays. The benchmark index opened 4.06 points higher at 1,687.13 and climbed to an intraday high of 1,693.09 during the morning session before losing momentum to end the day lower.
Asian markets were mixed on Thursday after Oracle’s disappointing earnings triggered a selloff in AI-related stocks, while the US dollar weakened and bonds strengthened following the Federal Reserve’s latest rate cut.
Oracle Shock Pulls Down AI Stocks
Oracle shares plunged over 11% after hours as its profit and revenue outlook missed expectations. Executives also warned of higher spending — raising concerns that AI infrastructure costs are rising faster than profits.
In Asia:
SoftBank Group dropped 5%, weighing on Japan’s Nikkei
Tokyo’s AI-linked stocks were the biggest losers
Nasdaq and S&P 500 futures fell 0.5% and 0.3% respectively
Fed Cuts Rates, Dollar Slides
The Fed lowered interest rates by 25bps to 3.5%–3.75%, but Chair Jerome Powell struck a balanced tone, reassuring markets that no official sees rate hikes as the base case.
This pushed:
S&P 500 up 0.7%
Dollar lower, sending the euro above US$1.17
Yen stronger at 155.66 per dollar
The Fed also announced it will buy short-term Treasuries to improve liquidity, giving bonds another lift:
10-year yield dipped to 4.14%
2-year yield fell to 3.54%
Asia Equities Mixed
Hang Seng up 0.8%, helping MSCI Asia ex-Japan rise 0.5%
Nikkei traded flat as AI names dragged
Oil Prices Rise on Geopolitical Concerns
Oil gained for a second session after the US seized a sanctioned Venezuelan tanker, heightening supply risk:
Brent: US$62.53
WTI: US$58.85
What’s Next for the Dollar?
Analysts say the next major trigger will be the US non-farm payrolls on Dec 16. A softer jobs number could keep expectations for more 2026 Fed cuts alive.
ING analysts noted:
“Seasonally, the dollar tends to weaken into year-end. With Fed risk out of the way, EUR/USD could run toward 1.1800.”
Comments
Post a Comment