KUALA LUMPUR, March 19 (Bernama) -- Bursa Malaysia ended lower today due to late selling in selected heavyweights, particularly in the healthcare, utilities and financial services sectors and was also in sync with regional market weakness. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 9.10 points or 0.53 per cent to 1,720.71 from yesterday’s close of 1,729.81. The market bellwether opened 6.52 points lower at 1,723.29, and fluctuated between 1,719.93 and 1,737.12 throughout the day. Market breadth was negative with losers beating gainers 707 to 442. A total of 486 counters were unchanged, 1,131 untraded and 11 suspended. Turnover increased to 3.36 billion units worth RM4.96 billion from yesterday’s 3.33 billion units worth RM4.27 billion.
The Japanese yen stabilised after the Bank of Japan (BOJ) kept interest rates unchanged, as markets balanced domestic policy signals against a hawkish US Federal Reserve outlook and rising global energy prices.
Yen Steady Despite Policy Hold
The yen strengthened slightly to around ¥159.64 per US dollar, holding onto gains following the BOJ’s widely expected decision to maintain its benchmark rate.
However, currency movements remain volatile as investors weigh:
Japan’s gradual policy normalisation path
Continued strength in the US dollar driven by higher US rates
Oil Prices Add Pressure on Japan’s Inflation
Japan faces increasing challenges from surging oil prices, driven by escalating conflict in the Middle East.
As a major energy importer, higher crude prices are expected to:
Lift inflation pressures
Increase import costs
Complicate the BOJ’s policy decisions
BOJ Still Seen on Path to Rate Hikes
Despite holding rates, the BOJ is still expected to continue gradual tightening, with markets not ruling out a potential rate hike as early as April.
Investors are now closely watching Governor Kazuo Ueda’s guidance, particularly for signals on:
Timing of the next rate hike
Assessment of inflation risks
Impact of global geopolitical developments
Intervention Risk Remains in Focus
The yen’s recent weakness has prompted official warnings of potential intervention.
Japan’s finance ministry has indicated it is ready to act if currency volatility intensifies, especially if the yen weakens beyond key psychological levels such as ¥160 per dollar.
However, analysts note that intervention may be challenging given:
Strong US dollar fundamentals
Rising interest rate differentials
Persistent energy-driven inflation pressures
Political and External Factors Add Uncertainty
Political developments are also influencing market expectations.
Prime Minister Sanae Takaichi’s stance on monetary policy, including her cautious approach toward further rate hikes and dovish BOJ appointments, has added uncertainty to the policy outlook.
Additionally, her upcoming meeting with US President Donald Trump may have implications for economic and currency relations.
Investor Takeaways
The yen is stabilising near ¥160 per dollar after the BOJ held rates steady.
Rising oil prices are increasing inflation risks for Japan’s import-dependent economy.
The BOJ is still expected to gradually tighten policy, with a potential hike in April.
Currency intervention remains a possibility, though constrained by strong US dollar fundamentals.
Investors should monitor BOJ guidance, Fed policy divergence, and geopolitical risks as key drivers.
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