FBM KLCI up 11.2 points as US bond yields ease

FBM KLCI up 11.2 points as US bond yields ease
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KUALA LUMPUR (April 27): The FBM KLCI rose 11.2 points or 0.6% to close at 1,863.47 today as Malaysian stocks took cue from US equities' firm performance overnight after US government bond or Treasury yields eased below 3%.

At Bursa Malaysia today, nearly all indices closed in positive territory at 5pm. The small-cap index finished 67.66 points or 0.47% up at 14,545.46 points.

“It wasn’t a surprise. There was a nice rally of 1% in US stocks last night that gave a bit of inspiration to stocks in this region of the world," Inter-Pacific Securities Sdn Bhd head of research Pong Teng Siew told theedgemarkets.com today.

“This was because the impact of rising yields in the US is fading off," Pong said. CNBC reported that US government debt yield slipped on Thursday as a fresh wave of buying pressured the 10-year Treasury note rate to under 3 percent. It was reported that the yield on the benchmark 10-year Treasury note was lower at around 2.998 percent at 1:07 pm ET.

CNBC reported that markets around the globe have been keeping a close eye on the US bond market as rising Treasury yields put investors on edge. It was reported that on Tuesday, the yield on the 10-year Treasury note topped 3 percent, the first time it has done this in more than four years, and extended gains on Wednesday.

Today, Asian stocks closed firmer. Japan’s Nikkei 225 and South Korea’s Kospi were up 0.66% and 0.68% respectively.

In China the Shanghai Stock Exchange Composite finished 0.23% higher while Hong Kong’s Hang Seng gained 0.91%.