KUALA LUMPUR, July 30 (Bernama) -- Bursa Malaysia's key index closed at an intraday high today, supported by continued buying interest even as renewed geopolitical tensions and a weaker overnight lead from Wall Street following the US Federal Reserve's (Fed) decision to stand pat on interest rates weighed on broader sentiment. The Fed has decided to hold rates steady for the fifth consecutive meeting, with the Federal Funds Rate unchanged between 3.50 per cent and 3.75 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.84 points to 1,720.40 from yesterday’s close of 1,715.56. The benchmark index, which opened 1.14 points lower at 1,714.42, hit its lowest level of 1,710.69 in early trade before gaining momentum for the rest of the day. However, the broader market was negative with losers outpacing gainers 581 to 411, while 612 counters were unchanged, 1,173 untraded, and 87 suspended. Turnover declined to 2.49 billion units valued at RM2.25 billion from ...
Global markets slipped back into risk-off mode as renewed hostilities between the US and Iran unsettled investors, overshadowing positive economic data and reinforcing geopolitical-driven volatility.
Asian Stocks Slide Amid Renewed Tensions
The MSCI Asia-Pacific ex-Japan Index fell 0.8%, reflecting broad regional weakness:
- Nikkei 225 -1.3%
- Kospi -2.0%
The decline follows a sell-off on Wall Street, where the S&P 500 dropped 0.7%.
Oil and Geopolitics Drive Market Sentiment
Markets were shaken after fresh exchanges of fire between the US and Iran, raising concerns over:
- Energy supply disruptions
- Prolonged instability in the Middle East
While Brent crude initially surged, it later eased to around US$97 per barrel, reflecting conflicting signals on ceasefire progress.
Economic Data Takes a Back Seat
Stronger US data failed to lift sentiment:
- ISM services PMI improved, indicating resilient demand
- Businesses increased inventories ahead of potential supply disruptions
However, investors largely ignored the data, with geopolitical risks dominating market direction.
Tech Sector Faces New Pressure
Broadcom fell sharply in after-hours trading:
- -13% after weaker-than-expected revenue guidance
- Maintained long-term outlook, raising concerns of AI momentum cooling
This adds pressure to the highly valued semiconductor sector.
Currency and Safe-Haven Moves
- US dollar held firm after recent gains
- Japanese yen weakened slightly, despite rate hike discussions
- Gold rose 0.5%, reflecting safe-haven demand
Meanwhile:
- Bitcoin -1.3%
- Ether moved higher, showing mixed crypto sentiment
Policy and Political Developments
The US House passed a war powers resolution aimed at limiting further military action, though its impact remains uncertain given political hurdles.
Investor Takeaways
- Markets have shifted back to risk-off mode amid renewed geopolitical tensions.
- Asian equities and US stocks declined, reflecting rising uncertainty.
- Oil price volatility remains a key driver of inflation and sentiment.
- Weak guidance from Broadcom raises concerns about AI sector momentum.
- Investors should stay cautious as geopolitics continues to dominate markets.
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