KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
The Federal Reserve's anticipated shift to interest-rate cuts this week is expected to bolster emerging Asian market assets , potentially extending their recent lead over global favorites like Japan and chip stocks. Smaller Southeast Asian markets are likely to continue outperforming their larger counterparts, although a significant rise in the yen could introduce volatility into the Japanese market and high-performing chip stocks. The fear of an unwind in the yen carry trade could have global repercussions. Investors remain divided on whether the Fed will initiate its easing cycle with a standard 25 basis point cut or opt for a larger half-point reduction . A more substantial cut could raise concerns about the US economy's health, outweighing any positive stimulus effects. Key Market Expectations Watching the Yen The yen's trajectory is closely linked to expectations around Fed rate cuts. The currency surged past the 140 per dollar mark on Monday, reaching its stro...