KUALA LUMPUR, March 5 (Bernama) -- Bursa Malaysia ended higher today in line with regional equities as bargain hunting emerged after the benchmark index briefly slipped below the psychological 1,700 level in recent trading sessions. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) increased 14.98 points, or 0.88 per cent, to close at an intraday high of 1,713.20 from Wednesday’s close of 1,698.22, The benchmark index opened 8.03 points higher at 1,706.25 and slipped to an intraday low of 1,701.83 in early trade. Gainers beat losers by 572 to 511, while 523 counters were unchanged, 1,016 untraded, and 11 suspended. Turnover declined to 2.85 billion units worth RM3.26 billion from Wednesday’s 3.51 billion units worth RM3.79 billion.
Asian equity markets are expected to open higher on Thursday, following a rebound in US stocks that helped stabilise investor sentiment after heavy regional losses earlier in the week.
Futures for Japan, Australia and Hong Kong markets rose, while South Korea’s Kospi futures surged nearly 8%, indicating a strong rebound after the market’s sharp decline on Wednesday.
The improved outlook comes despite ongoing geopolitical tensions linked to the Iran conflict, which continues to push oil prices higher.
Wall Street Recovery Supports Risk Sentiment
US equities closed higher overnight as economic data suggested stronger growth and moderating inflation pressures.
Key US market performance:
S&P 500: +0.8%
Nasdaq 100: +1.5%
The rally was largely driven by mega-cap technology stocks, which helped lift the broader market.
Investor sentiment was supported by data showing the US services sector expanded at its fastest pace since mid-2022, while a key price index fell to its lowest level in almost a year.
The data helped ease concerns that inflation could remain persistently high.
Oil Prices Remain Elevated Amid Middle East Conflict
Despite improving market sentiment, geopolitical risks remain a major factor for global markets.
Oil prices settled around US$75 per barrel, supported by uncertainty surrounding the Iran-related conflict involving the US and Israel.
Recent developments include:
Continued military operations targeting Iranian sites
The sinking of an Iranian warship in international waters
Diplomatic efforts from China to mediate tensions in the region
These developments have kept energy markets volatile and remain a key risk factor for global inflation expectations.
Market Indicators
Several market indicators reflected the changing risk environment.
US dollar: -0.3%
10-year Treasury yield: 4.10% (+4 bps)
Gold: rebounded after earlier declines as investors bought the dip
A weaker dollar also supported regional currencies, including:
Japanese yen
Australian dollar
New Zealand dollar
Policy and Data in Focus
Investors are closely monitoring upcoming economic data and policy signals.
Key events ahead include:
US February jobs report (Friday)
US inflation data next week
Federal Reserve policy meeting on March 17-18
The Fed cut rates three times in 2025, but policymakers have since paused further easing, citing persistent inflation and a stabilising labour market.
Some officials have even suggested the possibility of future rate hikes if inflation pressures return.
Key Developments in Asia
Asia will see several important economic releases in the coming days.
Upcoming data and policy decisions include:
Inflation data from Thailand and the Philippines
Interest rate decision from Bank Negara Malaysia
Taiwan industrial production
China’s National People’s Congress, where policymakers are expected to outline the next Five-Year Plan
These developments could provide clearer signals on regional economic growth prospects.
Macro Outlook
Despite geopolitical tensions, some investors remain optimistic about the broader economic outlook.
According to Goldman Sachs strategist Peter Oppenheimer, global equities may face short-term headwinds from geopolitical risks and AI-related uncertainties, but strong economic fundamentals and corporate earnings should limit the scale of any correction.
Similarly, hedge fund manager Charles Lemonides believes the most likely scenario is that geopolitical tensions eventually stabilise while the global economy continues to expand.
Risks to Watch
Key risks that could shift market sentiment include:
Escalation of the Iran conflict
Sharp spikes in oil prices
Unexpectedly strong inflation data
Potential changes in Federal Reserve policy
Any of these factors could reignite volatility in global equities.
Investor Takeaways
Asian markets are set for a rebound after heavy selling earlier this week.
US economic data showing easing inflation pressures supported global equities.
Oil prices remain elevated near US$75, reflecting ongoing geopolitical tensions.
South Korea’s Kospi futures signal a sharp bounce, following Wednesday’s crash.
Investors are watching US jobs data and upcoming inflation reports for clues on Fed policy.
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