Daily Market Reports Issued By Rakuten Trade Research : Page 6

Wall Street stumbled again as AI-related stretched valuations continue to weigh on sentiment.
Ongoing shrinking risk appetite saw the Nasdaq losing by more than 1,000 points over the past 5 trading days.
Meanwhile, all eyes will be on Nvidia’s earnings later today as the US 10-year yield remains elevated at 4.117%.
Over in Hong Kong, the HSI maintained its slump to end below the 26,000 level.
Sentiment was again spooked by the sell-off on Wall Street amid the lofty tech valuations coupled with the uncertainty on the Fed’s next move on interest rates.
Back home, the FBM KLCI fell to below the 1,615 mark amid a regional bloodbath.
Notwithstanding this, we remain adamant that bargain hunting activities should return if and when the index hangs below the 1,610 thresholds.
In view of this, we expect the index to trend within the 1,610-1,620 range today.

Wall Street closed broadly lower as the selling on AIrelated stocks continues ahead of big name earnings namely Nvidia, tomorrow.
Meanwhile, expectations of a Fed rate cut in December are diminishing as the US 10-year yield stayed elevated at 4.139%.
In Hong Kong, the HSI declined as traders are concerned over the delayed release of the US economic data after the record breaking government shutdown coupled with the uncertainty over the Fed’s stance on interest rates.
Back home, the FBM KLCI managed to stay above water despite a strong morning session.
We suspect foreign funds may be locking in some profits reflecting their short term vision.
Nonetheless, we felt vindicated that most SEA markets have all performed positively attributed to their attractive valuations of which we have mentioned numerously.
For today, we expect the index to trend between the 1,625-1,635 range.

Wall Street ended mixed as traders switched their position into tech related stocks after a massive sell-off that saw the Nasdaq losing more than 500 points over the past 3 days.
In addition, the prolonged government shutdown may have also prevented some crucial economic data from being released.
Meanwhile, the US 10-year yield inched higher at 4.15%.
Over in Hong Kong, the HSI skidded towards the 26,500 level as sentiment was affected by China’s weak economic data coupled with the fading hopes of a Fed rate cut in December.
Domestically, the FBM KLCI declined in line with the regional weaknesses.
However, we detected some mild buying support that helped lift the index off the day’s low.
As traders are now disenchanted by the high valuations on Wall Street, we believe Asia which still offers reasonable value proposition, may attract the flight of funds back into the region.
As such, we expect the index to hover within the 1,630-1,640 range today.

Wall Street tumbled as the selling on AI related stocks continued and the situation is further exacerbated by the declining possibility of a Fed rate cut in December.
Meanwhile, the US 10-year yield inched higher at 4.115% as the government shutdown ends.
As for Hong Kong, the HSI recovered from earlier losses to surged past the 27,000 level as buying activities emerged on Alibaba following news the tech giant has plans to revamp its main app to include more AI features that could rival ChatGPT.
Back home, the FBM KLCI managed to pare earlier losses to stay above water amid some late stock accumulation.
Notwithstanding the prevailing mini consolidation, we believe the stage is set for the index to climb higher despite the recent volatility in US equities.
For today, we anticipate the index to trend between the 1,625-1,640 range.

Wall Street has had another mixed day as traders continue to pare down their tech holdings that saw the Nasdaq ended in negative territory while the DJIA notched another record high spearheaded by the financials.
Meanwhile, the US 10-year yield eased to 4.065% in view of the re-opening of the US government.
Over in Hong Kong, the HSI regained its strength to hit almost the 27,000 level or at a 1-month high as sentiment was boosted by the imminent re-opening of the US government coupled with the Federal Reserve’s rate adjustments in December.
On the domestic front, the FBM KLCI closed lower but stayed above the 1,630 mark as the local bourse may be undergoing a minor indigestion.
We see market undertone is now more stable thus expecting the index to hover within the 1,630-1,640 range today

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