KUALA LUMPUR, July 29 (Bernama) -- Bursa Malaysia rebounded to close higher on Wednesday on selective buying of defensive stocks after a volatile trading session. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said consumer products and services stocks lifted the key index higher, overcoming lingering geopolitical concerns. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 3.08 points to 1,715.56 from yesterday’s close of 1,712.48. The benchmark index, which opened 1.91 points higher at 1,714.39, moved between 1,710.79 and 1,720.59 during the day’s trading. In the broader market, gainers outstripped decliners 550 to 476, while 612 counters were unchanged, 1,129 untraded, and 48 suspended. Turnover rose to 2.96 billion units valued at RM2.48 billion from 2.94 billion units valued at RM2.56 billion on Tuesday.
The long-held belief that a weaker yen benefits Japanese stocks is unraveling as the correlation between the two diminishes due to diverging global monetary policies. Key Developments Topix Stagnation: Despite the yen’s volatility, the Topix Index has remained range-bound since its summer crash. The correlation coefficient between the yen and Topix is near zero, indicating negligible linkage. BOJ’s Policy Shift: The Bank of Japan (BOJ) shifted focus in May to curb inflation driven by a weak yen, rather than stimulating a virtuous cycle of wages and prices. Foreign investors have been net sellers of Japanese stocks since this shift. Impact of BOJ Hawkishness: A weaker yen now signals potential BOJ rate hikes, which depress stock valuations. The BOJ’s hawkish stance contrasts with expectations of rate cuts by the US Federal Reserve, creating further headwinds for Japanese equities. Changing Dynamics of the Japanese Economy Export Dependency Declines: Japan’s economy, long perceived as ...