Daily Market Reports Issued By Rakuten Trade Research : Page 16

Wall Street ended higher with all three major indices notching record highs on prospect of a Fed rate cut while waiting for crucial inflation data today and tomorrow.
Meanwhile, the US 10-year yield inched higher at 4.086%.
Over in Hong Kong, the HSI surged to a 4-year high, a level last seen in Aug-2021.
Sentiment was boosted by the latest upgrade on the Hang Seng index from Citigroup coupled with the imminent Fed rate cut next week.
Back home, the FBM KLCI closed in positive territory despite both Maxis and MISC adjusted for ex-dividend illustrating that the market undertone for the local bourse remains intact.
Hence, we believe the benchmark index will re-test the 1,600 level anytime soon.
For today, we expect the index to hover between the 1,585-1,600 range.

Wall Street ended broadly firmer with Nasdaq hitting another record high as traders are looking ahead for crucial inflation data over the next few days.
In view of this, the US 10-year yield eased to 4.04%.
Over in Hong Kong, the HSI closed on a positively note edging closer to the 26,000 mark as sentiment remains buoyant of a Fed rate cut next week amid a weakening US job market.
Back home, the FBM KLCI as expected ended higher after playing catch-up with regional markets.
Buying support from local institutions remains apparent underscoring that the local bourse is rather well supported.
We believe stock accumulation to continue as we enter into the final quarter of 2025 with corporate environment still stable.
For today, we anticipate the index to trend within the 1,585-1,600 range.
Meanwhile, gold prices surged to another record high clearly illustrating that funds may be flowing out of USD denominated assets.

Wall Street closed lower on concerns of a weakening job market and the state of the US economy.
Although a Fed rate cut seems imminent, traders shifted their attention to the 22,000 job openings in August as opposed to the estimate of 75,000.
As a result, the US 10-year yield declined to 4.076%.
On the contrary, Hong Kong equities rebounded on heightening possibilities of an apparent Fed rate adjustment by middle of this month.
Back home, the FBM KLCI ended on a flat note amid muted buying support.
We noticed that despite admitting the recent concluded earnings season had been decent, most research houses prefer to remain calm hence expecting the KLCI to trend between 1,620-1,690 by end 2025.
For today, we believe the KLCI to play catch up following a strong regional performance last Friday thus anticipate the index to hover within the 1,580-1,595 range.

Wall Street ended mixed on concerns over the latest job opening data which showed a decline in the US underscoring a weakening US economy.
Nonetheless, a federal court decision in an Alphabet anti-trust case avoided a worst case scenario for the tech giant, sending share price 9% higher.
Meanwhile, the US 10- year yield edged higher at 4.219%.
As for Hong Kong, the HSI declined despite a bright opening as sentiment may have turned cautious over the fatigue shown amongst Chinese stocks following a strong rally recently.
On the domestic front, the FBM KLCI showed sporadic buying but failed to sustain a decent uptrend.
Nonetheless, the benchmark index managed to close modestly higher ahead of another long weekend starting Friday.
As such, we expect the index to trend within the 1,575-1,585 range today

Wall Street declined attributed to profit taking activities as sentiment was affected by the latest court ruling that Trump’s tariffs policy may be illegal.
Thus, amid the heightened uncertainty, the US 10-year yield inched higher at 4.265%.
Over in Hong Kong, the HSI retreated following a blistering run-up recently bolstered predominantly by the Chinese stock market boom buoyed by strong buying interests of late.
On the domestic front, the FBM KLCI closed marginally higher due to last minute buying support after hovering in negative territory for most of the session.
As such, we remain confident that the local bourse remains well supported by local institutions despite the persistent net foreign outflows.
In view of this, we expect the index to trend between the 1,575-1,585 range today.
Meanwhile, gold prices surged to an all-time high above USD3,500/oz underscoring the apparent flight of funds out of USD.

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