MONEY MASTER

Malaysia’s stock market reached a major milestone as the  FBM KLCI breached the 1,700 level , climbing to its  highest point in more than seven years . The benchmark index opened at  1,700.74 , last seen in  November 2018 , signalling renewed investor confidence in Malaysia’s economic outlook. What’s Driving the Rally Heavyweight buying support  pushed the index past the psychological 1,700 mark Positive sentiment since early January , after the index rallied from around 1,680 on Jan 5 Investors responded favourably to  Prime Minister Anwar Ibrahim’s New Year 2026 message , which emphasised: Reform-led growth Stronger governance and execution Near-term economic support measures These signals reinforced expectations of policy continuity and a more pro-growth environment in 2026. Sector Performance Snapshot Top gainers: Technology Property Construction Lagging sectors: Utilities Transportation Industrial The sector rotation suggests investors are positioning ...

Market Mood: Risk-On Asian markets rallied for the  second straight session  as traders  bet big on Fed rate cuts , following  disappointing US job data  and political drama at the US labor office. MSCI Asia ex-Japan : ▲0.6% Nikkei 225 : ▲0.5% (bouncing back from its steepest fall in 2 months) Dollar vs Yen : ▼0.1% to ¥146.96 Fed Rate Cut Odds  (Sept):  ↑ to 94%  (from 63% on July 28) Fed in Focus Markets are now pricing in  two quarter-point cuts by year-end . “Maybe not in September, but certainly this year,” said NAB’s Rodrigo Catril, as parts of the US economy show weakness. Adding fuel to the fire: Trump fired the head of US labor stats  after weak payroll data. He’ll also get to appoint a new Fed governor , raising  fears of politicized rate policy . Oil & Commodities Check Brent Crude : Flat at  US$68.76 US Crude : ▼0.02% at  US$66.28 Spot Gold : ▲ slightly to  US$3,381.4/oz Bitcoin : Holding gains at ...

Markets love clarity — even if it’s temporary. Asian equities opened the midweek session in  green territory , led by a  1.7% surge in Japan’s Nikkei , after US President  Donald Trump unveiled a fresh trade deal with Japan . The news, laced with promises of  US$550 billion in Japanese investments  and a  15% reciprocal tariff , injected optimism into a market hungry for relief from policy uncertainty. Auto stocks stole the show : Mazda : +12% Toyota : +10% Meanwhile,  MSCI Asia-Pacific ex-Japan  nudged higher (+0.2%), with strength seen in  Australia and South Korea . Why It Matters for Investors: While markets cheered the “deal,” veteran economist  Norihiro Yamaguchi  reminded us: the devil’s in the (missing) details. “Lowered uncertainty is welcomed in equities, but it offers little upside to the real economy for now.” So, is this a  short-term sugar high  or a genuine shift? Here’s What We’re Watching: More deals in th...

Asian stocks have historically performed well in July, but  this year’s rally may be short-circuited  as  Donald Trump’s tariff deadline looms large . With only  7 days left  before trade deals must be struck—or face new levies—investors are turning cautious. Strong Seasonality, Shaky Sentiment Over the past decade,  July has averaged a 1.36% gain  for the MSCI Asia Pacific Index—second only to November. But 2025 could break that trend as  trade tensions, high US rates, and fading growth  pressure the region. Japan’s Nikkei 225 fell 1% early Wednesday after Trump  reaffirmed plans to hike tariffs  and specifically called out Japan in his criticism.  Investors fear a repeat of April’s selloff , when “Liberation Day” tariff threats sparked a sharp correction across Asian equities. “Investors are holding back on fresh allocations,” said Christian Nolting, CIO at Deutsche Bank Private Bank. “There’s progress in talks, but memories ...

Asian shares are expected to decline on Tuesday, following Wall Street's dip after a record-setting rally. Futures in Hong Kong, Shanghai, and Sydney pointed to losses, while Tokyo looked poised for modest gains. This comes after the S&P 500 fell 0.2% and the Dow Jones Industrial Average slid 0.8% , with most sectors except technology moving lower. A key focus is on the S&P 500 , which has gone about 30 sessions without consecutive losses, a streak that ranks among the best since 1928, despite concerns over the index being overbought. According to Dan Wantrobski, director of research at Janney Montgomery Scott , the index remains vulnerable to short-term profit-taking. US 10-year Treasury yields jumped by 11 basis points to 4.20%, with Australia’s 10-year yield rising by 9 basis points. T Rowe Price’s Arif Husain predicts that yields could test the 5% threshold in the next six months due to rising inflation expectations and fiscal spending concerns. Meanwhile, in Asia,...

  Shares of Guotai Junan Securities Co and Haitong Securities Co surged after the announcement of their merger terms , which will create a state-backed brokerage with US$226 billion (RM969.99 billion) in assets. This new entity is set to compete with Wall Street firms expanding in China. On Thursday, shares of both companies surged more than 100% in Hong Kong and by the 10% daily limit in Shanghai, as they caught up with the broader rally in Chinese and Hong Kong stocks driven by China’s recent stimulus measures . The deal, which was suspended on Sept 6, involves a share swap , where Guotai Junan will issue shares to Haitong’s holders at a 0.62 to 1 ratio , offering a 32% premium in Hong Kong. Guotai Junan also plans to raise 10 billion yuan from its controlling shareholder to support the merger. The combined entity will have 1.6 trillion yuan in assets, surpassing Citic Securities Co as the largest brokerage in China, with operations spanning Hong Kong, Singapore, New Y...

Alibaba Group Holding Ltd’s stock rose sharply in Hong Kong on Tuesday after it became directly accessible to mainland Chinese investors through the Stock Connect program, which links the Shanghai and Shenzhen exchanges to the Hong Kong Stock Exchange. Key Takeaways: Inclusion in Stock Connect Program : Alibaba's shares were added to the Stock Connect program for the first time, allowing mainland Chinese investors to trade the stock directly. This led to a significant gain of up to 5.2% in Alibaba's stock price, with trading volume more than double the three-month full-day average by mid-morning. Expected Inflows and Impact on Valuation : The inclusion is anticipated to attract around $20 billion in inflows from mainland investors into next year, potentially leading to a stake of over 10% in Alibaba held by these investors. This should help narrow Alibaba’s valuation discount compared to its rival, PDD Holdings Inc, according to Bloomberg Intelligence analysts. Boost Amid Weak ...

  Asian stocks surged on Wednesday, and the yen experienced volatility after the Bank of Japan (BOJ) raised interest rates. Investors also digested mixed results from tech giants Microsoft and AMD, highlighting differing impacts within the AI sector. Key Points: BOJ Rate Hike: The BOJ increased its overnight call rate target to 0.25% from 0%-0.1%. It also announced a quantitative tightening plan to reduce monthly bond buying to ¥3 trillion by early 2026. Market Reaction: Japan's Nikkei index saw choppy trading, ending down 0.19%. Japanese government bond yields fell slightly post-decision. The yen fluctuated but remained flat at 152.81 per dollar, marking over a 5% gain in July. MSCI's Asia-Pacific index outside Japan rose 0.9%. Chinese blue-chip stocks and Hong Kong’s Hang Seng index both increased by about 2%. Influences on the Market: Oil Prices: Rose from seven-week lows due to Middle Eastern tensions after Hamas reported the killing of its leader Ismail Haniyeh in Tehran...

Japan's Nikkei share average rebounded on Monday from a three-month low, buoyed by a positive finish on Wall Street at the end of last week, which lifted investor sentiment. Key Highlights: Market Performance: Nikkei: Closed 2.13% higher at 38,468.63, marking its first day of gains in nine sessions. Topix: Rose 2.23% to 2,759.67. Wall Street Influence: Wall Street's major indices ended higher last Friday, driven by a rebound in tech megacaps and optimism that the Federal Reserve will soon begin cutting interest rates following favorable inflation data. Market Sentiment: The pause in the decline of US technology shares has positively impacted Japanese equities. Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management, noted the positive influence of the stabilization in US tech shares on Japanese markets. Sector Performance: All but 11 of the Nikkei's 225 constituents advanced. Notable gains in chip-related shares: Tokyo Electron (up 3.7%) and Adva...

Chinese stocks closed largely flat on Monday as investors awaited a crucial Politburo meeting later this week, hoping for stimulus measures to support the world’s second-largest economy. Meanwhile, Hong Kong stocks rose, tracking gains in regional markets. Key Market Movements: China: Shanghai Composite Index: Closed up 0.03% at 2,891.85 points. Blue-Chip CSI 300 Index: Fell 0.54% to 3,390.74 points. Financial Sector Sub-Index: Increased by 0.56%. Consumer Staples Sector: Declined by 1.75%. Real Estate Index: Dropped 3.15%. Healthcare Sub-Index: Decreased by 1.81%. Shenzhen Index: Ended down 0.47%. ChiNext Composite Index: Weakened by 1.44%. Hong Kong: Hang Seng Index: Closed up 217.03 points, or 1.28%, at 17,238.34 points. Hang Seng China Enterprises Index: Rose 1.16% to 6,080.56 points. Sub-Indices: Energy Shares: Increased by 2.1%. Information Technology Sector: Rose by 1.73%. Financial Sector: Ended 1.43% higher. Property Sector: Rose by 0.24%. Regional Performance: M...

  Equities in Asia declined as investors began pulling back from the artificial-intelligence frenzy that has driven the bull market this year. The yen rose for a fourth day ahead of next week’s Bank of Japan meeting. Key Market Developments: Asian Market Declines: The MSCI Asia Pacific Index fell 1.5% to its lowest since last month. Japan’s Nikkei 225 headed for a technical correction. South Korea’s benchmark dropped nearly 2%, with SK Hynix Inc. tumbling as much as 8.9% despite an earnings beat. In the US, the S&P 500 slumped 2.3%, its worst performance since December 2022. Reassessment of AI Investments: "There seems to be a broad reassessment on the cost and benefit calculus for the artificial intelligence ecosystem," said Homin Lee, senior macro strategist at Lombard Odier Singapore Ltd. Concerns about consumer demand due to softening US data are contributing to this reappraisal. Yen Strengthens: The yen climbed 1% against the dollar, trading at its strongest levels s...

 Asian stocks neared two-year highs on Wednesday, buoyed by increased expectations of US rate cuts. Conversely, the New Zealand dollar dropped after the Reserve Bank of New Zealand (RBNZ) indicated a more dovish outlook on inflation. Key Highlights: RBNZ Decision and Market Reaction : The RBNZ maintained its cash rate at 5.5% as anticipated but projected that inflation would return to its target range of 1% to 3% by the second half of the year. Following the announcement, the New Zealand dollar fell over 0.7% to $0.6079, influenced by the central bank's less hawkish tone compared to May's policy stance. Impact on Rate Cut Expectations : Alvin Tan, head of Asian foreign exchange strategy at RBC Capital Markets, noted that the RBNZ's confidence in CPI normalization contributed to the kiwi's decline. Traders have increased their bets on rate cuts from the RBNZ later this year, with swaps now suggesting about 30 basis points of easing by October, up from 16 basis points bef...

Key Developments in Japan's Economy I nflation Trends : Japan's inflation rate accelerated in May, largely driven by a significant 14.7% increase in electricity prices. Consumer prices excluding fresh food rose to 2.5% year-on-year, marking a steady exceedance of the Bank of Japan's (BOJ) 2% target for the 26th consecutive month. BOJ's Monetary Policy Stance : The recent inflation figures reinforce the rationale for the BOJ to consider a rate hike. Although the Consumer Price Index (CPI) growth is within expected ranges, the consistent above-target inflation readings suggest a potential tightening of monetary policy. The central bank has indicated it will detail plans to reduce bond buying next month, which could precede an interest rate adjustment. Economic Indicators and Forecasts : Analysts are cautious, suggesting that the BOJ may wait for Q2 economic growth data, due in August, before making a final decision on rate hikes. The central bank remains responsive to ong...

The Asian market looks likely to test February highs today, with the US manufacturing sector and gains in oil prices helped to ease the pressure and worries about a global slowdown. The US stocks had already gained much higher yesterday. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.6 percent in early trade, coming within striking distance of last month's peak touched on Feb. 23, its highest since early January. According to Reuters report, Chicago-listed futures point to a 2.6 percent gains in Japan's Nikkei. The market has basically been responding to the good news from the manufacturing data, which had been a major concern before this. This could probably revive expectations of a Fed rate hike. The Institute for Supply Management's (ISM) index of factory activity, a closely-watched measure of the U.S. manufacturing sector, rose more than expected last month. It also edged up for two months in a row, appearing to have snapped its almost...