Daily Market Reports Issued By Rakuten Trade Research : Page 5

Wall Street continues to struggle as traders are worried over the weakening consumer confidence in view of Trump’s impact on the US economy.
In line with the potential negative effects, the US 10-year yield slid to 4.298%.
Meanwhile, it has been a choppy session in Hong Kong as the HSI dipped below 23,000 at the opening bell before recovering to post around 308 points decline or just above the 23,000 thresholds.
Overall sentiment was affected by the US latest move to restrict Chinese investments in US technology, infrastructure plus some critical industries.
Back home, the FBM KLCI slumped to below the 1,570 level as foreign selling continues in tandem with the broad-based regional declines.
The recent foreign sell-down has been unrelenting and though we see this as an opportune time to accumulate shares, we advocate investors to remain vigilant.
At current levels, the local bourse is trading at a reasonable 14.5x CY25 PER and we still hold the view that foreign buyers may return anytime soon.
For today, we expect the index to trend within the 1,565-1,575 range as confidence has turned fragile.

Wall Street dipped as sentiment was further eroded by Trump’s statement that tariffs on Canada and Mexico will go ahead.
Meanwhile, mass layoffs in both the public and private sectors may have negative implications on the US economy as the US 10-year yield eased to 4.40%.
Over in Hong Kong, the HSI appears to be taking a time off to close 136 points lower following the massive surge last Friday amid the ongoing trade tension between the US and China.
Nonetheless, cheaper valuations and the “DeepSeek” effect will remain as strong catalysts for the market going forward.
Back home, the FBM KLCI declined to below the 1,585 mark but off the day’s low as foreign selling and bargain hunting activities emerged.
As foreign funds are unloading their holdings within the SEA region, we see this as an excellent opportunity to mop up shares as foreign funds will certainly make a comeback sooner than later.
Hence for today, we anticipate the index to hover between the 1,580-1,590 range as we enter into a busy results period.

Wall Street slumped as traders weighed on the latest batch of data suggesting weakening US economic growth.
Lower consumer sentiment, inflationary pressure and lower home sales have had traders looking at safer assets.
Meanwhile, the US 10-year yield eased further to 4.431%.
Over in Hong Kong, the HSI flew past the 23,000 mark with ease, to a 3-year high boosted by the Tech rally following the recent engagements between Xi Jinping and the Tech bigwigs.
YTD, the HSI has gained 16% while the Hang Seng Tech Index improved by 20%.
Back home, the FBM KLCI ended higher above the 1,590 mark as we believe foreign funds are finally back in view of the regional positive performances.
As mentioned numerously, we expect a flight of funds out of US equities to Asian ones attributed to better risk/reward ratio.
For today, we expect the index to trend within the 1,590-1,600 range.

Wall Street declined following a lacklustre forecast by retail giant Walmart and that confidence on the retail segment was further eroded from worries about the US economic health.
As a result, the US 10-year yield eased to 4.507%.
Over in Hong Kong, the HSI continued to slide as investors have turned cautious that recent rally amongst the tech stocks may have been overstretched.
Additionally, sentiment was also affected by the hawkish comments from the Federal Reserve on interest rates amid a challenging economic environment.
On the home front, the FBM KLCI weakness continued as it ended below the 1,580 level.
The benchmark index have had experienced consecutive declines over the past week from the 1,600 mark hence we believe bargain hunting opportunities should appear anytime soon.
For today, we expect the index to trend within the 1,575-1,585 range.

Wall Street closed modestly higher as traders shrugged off hawkish statements from the Federal Reserve on inflation and interest rates.
In view of the ongoing tariff spree from Trump, the Fed is concern of the subsequent impact on inflation.
Meanwhile, Trump may impose 25% tariff on imports of automobiles, pharmaceuticals and semiconductors.
Nonetheless, the US 10-year yield eased slightly to 4.535%. In Hong Kong, the HSI is still suffering from some indigestion as it closed marginally lower.
This is normal following its astronomical rise of around 15% gain YTD.
On the home front, the performance of the FBM KLCI is still disappointing as it ended lower at the 1,580 level.
We suspect foreign funds may be realigning their portfolio out of ASEAN and shift to the Hong Kong market for now.
Therefore, we expect this downtrend to be temporary as we believe more funds will re-direct their interests out of Wall Street to Asia, hence the spillover effect on the rest of the region.
For today, we expect the index to hover within the 1,580-1,590 range.

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