Daily Market Reports Issued By Rakuten Trade Research : Page 16

Wall Street was closed for Labor Day yesterday and will resume trading today.
Nonetheless, all 3 major indices on Wall Street declined last Friday after latest report on consumer sentiment for July decreased while July also saw a widening US trade deficit.
Over in Hong Kong, the HSI jumped by more than 500 points to test the 26,000 mark led by the 19% surge in Alibaba and expectations that the Federal Reserve will cut rate by mid this month.
Back home, the FBM KLCI as expected failed to maintain its uptrend as sellers emerged ahead of the long weekend.
As such, the index declined to below the 1,580 level.
Nonetheless, we believe a swift rebound should occur as we expect the market undertone is still strong.
For today, we anticipate the index to hover within the 1,575-1,590 range.

Wall Street closed positively with the S&P 500 touching another record high as traders were convinced that Nvidia’s earnings further affirmed the prevailing AI boom, albeit with some initial concerns.
Meanwhile, the US 10-year yield eased to 4.205% further highlighting the rate cut possibility by the Federal Reserve in midSeptember.
Over in Hong Kong, the HSI declined to just below the 25,000 level as sentiment was affected by earnings from Chinese companies weren’t compelling enough coupled with NVidia’s downbeat outlook.
Back home, despite hovering rather positively throughout the day, the FBM KLCI ended marginally lower attributed to last minute selling activities.
We believe this could be due to profit taking by foreign funds.
For today, we expect the index to hover between the 1,585-1,595 range ahead of the long weekend.

Wall Street closed on a high as sentiment remains boosted by expectations of a rate cut by the Federal Reserve next month.
Nonetheless, the tech bellwether Nvidia fell in extended trading despite coming in with some solid earnings, as traders are worried of its purported sales of chips to China.
Meanwhile, the US 10- year yield eased to 4.238%.
In Hong Kong, the HSI failed to sustain its strong opening as it ended in negative territory as sellers emerged ahead of Nvidia’s earnings and the ongoing China-US trade tension.
On the home front, the FBM KLCI reversed previous day’s losses to close at a day’s high from apparent local institution support.
Contrary to our initial concerns, we deem this immediate rebound as encouraging as it displayed the market’s resilience.
For today, we expect the index to possibly trend within the 1,590-1,605 range.

Wall Street closed firmer as traders prefer to ignore Trump’s removal of Federal Reserve Governor Lisa Cook, instead focusing on earnings from Nvidia later today.
Meanwhile, the US 10-year yield inched higher at 4.265%.
Over in Hong Kong, the HSI declined as profit taking activities emerged as worries over the pace of the US rate cut along with the China-US trade negotiations resurfaced.
Back home, the FBM KLCI faced with mounting selling pressure slid to just above the 1,580 threshold.
The sell-down was rather drastic amid a regional sell-off as illustrated by the spike in daily trading volume to above the 4bn level.
Whilst we are hoping for an immediate rebound, we believe yesterday’s aggressive selling may have dented the underlying confidence somewhat thus expect the index to hover within the 1,580-1,590 range today.

Wall Street closed lower as investors were reluctant to take long positions after U.S. Federal Reserve Chair Jerome Powell indicated that a September interest rate cut was likely but not guaranteed.
The Dow slipped 0.77% to 45,282.47, the S&P 500 fell 0.43%, and the Nasdaq eased 0.22%.
Across Asia, markets closed higher, buoyed by strong corporate earnings, and gains in technology stocks.
Hong Kong advanced further, led by strength in both the tech and property sectors, with the HSI gaining 1.94%.
On the local front, the FBM KLCI closed higher, breaking the 1,600 psychological resistance level with decent volume.
Nonetheless, we do not discount the possibility of profit-taking after five consecutive days of gains.
Having reversed its earlier decline in May 2025, the benchmark index is trending upward with consistent higher highs and higher lows, underscoring a bullish stance.
We believe that holding above the 1,600 level could provide the momentum needed to reach 1,650 in the near future.
For today, we anticipate the FBM KLCI to trend within the 1,600–1,620 range.

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