KUALA LUMPUR (Sept 6): The FBM KLCI settled up 2.87 points or 0.18% at Bursa Malaysia's afternoon close, while the ringgit strengthened as global shares rose on US-China trade war de-escalation expectation. Optimistic US economic data also supported sentiment.
At Bursa, the KLCI settled at 1,602.62 at 12:30pm. In currency markets earlier, the ringgit strengthened to 4.1770 against the US dollar at 12:23pm.
Reuters reported Asian stocks joined global peers and rose on Friday, while safe havens such as government bonds and the yen were on the defensive, amid hopes for easing U.S.-China trade tensions and as firm U.S. economic data increased risk appetites.
It was reported global equity markets welcomed news that the US and China agreed on Thursday to hold high-level talks early in October, raising hopes for substantial progress in de-escalating their long, bitter trade conflict.
Risk sentiment was further improved by upbeat U.S. data on Thursday. Reuters, quoting ADP, reported U.S. private payrolls increased in August at their fastest pace in four months. "Separately, the U.S. services industry rebounded last month to its fastest expansion since February, according to the Institute for Supply Management's non-manufacturing purchasing managers index," Reuters said.
In Malaysia today, analysts said easing concerns on Brexit and Hong Kong's political backdrop were also expected to support Malaysian shares.
"Lessening worries over (a) no-deal Brexit and political tensions in Hong Kong should cushion the local market's downside, ahead of the long weekend break, supported further by optimism over resumption of US-China trade talks next month," TA Securities Holdings Bhd wrote in a note today.
Malaysian markets will be closed on Monday (Sept 9), in conjunction with Yang di-Pertuan Agong Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah's birthday, according to Bursa Malaysia.
"Bursa Malaysia and its subsidiaries will resume operations on Tuesday, 10 September 2019," the bourse operator and regulator said in a statement.