KUALA LUMPUR, April 3 (Bernama) -- Bursa Malaysia closed marginally lower on Friday, as cautious sentiment persisted, with investors remaining on the sidelines amid ongoing conflicts in West Asia, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 2.80 points, or 0.16 per cent, to 1,695.50 from Thursday’s close of 1,698.30. The benchmark index opened 5.82 points higher at 1,704.12, and moved between 1,693.65 and 1,708.12 throughout the day. However, market breadth remained positive, with gainers outnumbering losers 634 to 415, while 521 counters were unchanged, 1,077 untraded and 10 suspended. Turnover improved to 3.38 billion units worth RM2.95 billion from yesterday’s 3.20 billion units worth RM3.50 billion.
Asian equities advanced on Wednesday as investors showed cautious optimism ahead of the Federal Reserve’s policy decision, while easing oil prices provided some relief to inflation concerns.
Equities Gain Despite Geopolitical Tensions
The MSCI Asia Pacific Index rose 1.3%, marking its third consecutive day of gains, with most sectors trading higher.
This followed modest strength on Wall Street, where the S&P 500 gained 0.3% and the Nasdaq 100 rose 0.5%, suggesting that investors are beginning to look past near-term geopolitical risks.
Japan’s Topix climbed 1.3%, while broader regional markets remained steady to positive.
Oil Retreat Signals Easing Inflation Pressure
Oil prices edged lower, offering a temporary reprieve from inflation fears.
Brent crude fell around 1% to below US$103 per barrel, while WTI declined 1.5%, even as tensions in the Middle East intensified.
The earlier disruption in the Strait of Hormuz had triggered concerns over energy supply, but the recent pullback suggests markets are reassessing the severity of the shock.
At the same time, the US 10-year Treasury yield held near 4.20%, indicating that bond markets are not pricing in a significant escalation in inflation expectations.
Focus Shifts to Federal Reserve Guidance
Investor attention is firmly on the Federal Reserve’s interest rate decision, with policymakers widely expected to hold rates steady.
The key focus will be on:
Rate projections (dot plot)
Chair Jerome Powell’s commentary
The Fed’s stance on rising energy prices vs. softening labour market signals
Markets have already scaled back expectations for rate cuts, reflecting uncertainty over how prolonged geopolitical tensions could impact inflation and growth.
Markets Resilient, but Risks Remain
Despite ongoing conflict involving Iran, Israel, and the US, risk assets have shown resilience.
Bitcoin hovered near US$74,000, while gold remained stable around US$5,000, indicating balanced positioning across risk and safe-haven assets.
However, strategists caution that volatility could persist if the conflict drags on, particularly through its impact on energy markets.
Historical trends suggest it could take four to five months for markets to fully recover from supply-driven oil shocks.
Corporate Developments in Focus
Nvidia is ramping up production of AI chips for China, reinforcing demand in the semiconductor space
Qualcomm announced a US$20 billion share buyback and dividend increase
Boeing flagged operational challenges that may weigh on first-quarter results
Eli Lilly declined after a broker downgrade on weight-loss drug expectations
BHP appointed a new CEO amid shifting commodity demand dynamics
Investor Takeaways
Asian equities are rising, reflecting cautious optimism despite geopolitical tensions.
Oil prices have eased, helping to stabilise inflation expectations and bond yields.
The Federal Reserve decision is the key near-term catalyst, particularly its forward guidance.
Markets remain resilient across equities, crypto, and commodities, but volatility risks persist.
Historical patterns suggest oil-driven shocks may take months to fully unwind, implying continued uncertainty.
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