FBM KLCI flat after falling with China stocks as US yield concerns remain

FBM KLCI flat after falling with China stocks as US yield concerns remain
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KUALA LUMPUR (April 26): The FBM KLCI closed 0.34 point higher on bargain hunting after tumbling with China shares. Reuters reported that China stocks tumbled on Thursday as investors were spooked by a US probe of Huawei, triggering a sell-off in tech firms as trade tensions between Beijing and Washington simmered just below the surface.

Meanwhile, global market concerns on rising US government bond or treasury yields at above 3% remain. In Malaysia, Areca Capital Sdn Bhd chief executive officer Danny Wong Teck Meng told theedgemarkets.com that there is still concern on rising US government bond yields.

“Now, not only that we’re seeing that the 10-year US bond yield is high, but also the short-term [interest rates] are also picking up,” Wong said. He noted that this indicates concern about potential inflation and interest rate hike.

At Bursa Malaysia, the KLCI closed at 1,852.27 at 5pm after tumbling to its intraday low at 1,846.54. The KLCI had earlier risen to its intraday peak at 1,863.57.

In China, the Shanghai Stock Exchange Composite fell 1.38% while Hong Kong's Hang Seng was 1.06% lower.

Elsewhere, Japan's Nikkei 225 rose 0.47% while South Korea's Kospi was up 1.1%.

Reuters reported that Asian stocks were supported on Thursday by robust corporate earnings that helped Wall Street quell concerns about the surge in US bond yields. However, sagging Chinese shares limited the upside potential of the market.

It was reported that US prosecutors in New York have been investigating whether Chinese technology company Huawei violated US sanctions in relation to Iran, according to sources familiar with the situation. Since at least 2016, US authorities have been probing Huawei's alleged shipping of US-origin products to Iran and other countries in violation of US export and sanctions laws, two of the sources said.