Daily Market Reports Issued By Rakuten Trade Research : Page 1

Wall Street ended lower despite a strong start as sentiment turned wary on the uncertainty over Trump’s tariff policy resurfaced.
Meanwhile, the US 10-year yield eased to 4.341%.
In Hong Kong, the HSI ended flattish as sentiment remains cautious over the tariff uncertainty even though Trump is displaying a softer side with the latest temporary suspension on cars.
Nonetheless, there are warnings that more tariffs may be introduced on the pharmaceutical and semiconductor sectors, hence adding to more uncertainty.
On the domestic front, the FBM KLCI edged above the 1,485 level as bargain hunters continue to mop up shares that are deem trading at reasonable valuations, currently at 13.5x as opposed to the historical 16.5x.
For today, we expect China’s president Xi Jinping’s visit to Malaysia may ignite some economic optimism hence anticipate the index to hover within the 1,480-1,500 range.

Wall Street rebounded amid a choppy session following the latest tariff exemption on tech components and certain devices that spurred the rally of tech stocks.
Nonetheless in order to soothe his ego, Trump said that this is only temporary.
Meanwhile, the US 10-year yield eased to 4.384%.
Over in Hong Kong, the HSI jumped the highest in 4 weeks to close above the 21,000 level as sentiment was buoyed by news that the US is suspending tariffs on certain electronics namely personal computers, smartphones and memory chips for the time being.
As such, the electronic segment led the broader market gains.
On the home front, the FBM KLCI also performed better than anticipated, in line with the tariff suspension as the index ended at the 1,480 mark.
As signs are showing that Trump may be lessening his tariff grip, we believe market undertone may be improving somewhat thus expect the index to hover between the 1,480-1,500 range today.

Wall Street capped a wild week by closing positively following comments from the White House that Trump is optimistic that China will seek a deal with the US.
In view of the heightening risk in the US, the 10-year yield continues to spike up, touching almost the 4.50% mark.
As for Hong Kong equities, the HSI managed to close positively at almost the 21,000 level mainly due to buying support from domestic funds.
However, market undertone remains cautious amid the ongoing trade war between the two economic giants after China slapped the US with a 125% tariff.
Back home, the FBM KLCI ended lower as the emergence of sellers was quite apparent in line with the weak regional performance.
Overall, investors remained edgy over the potential impact after the 90 day tariff pause thus, we can expect another volatile day ahead.
Nonetheless, this is good for the market’s trading velocity which improved recently.
Thus, we expect the index to trend between the 1,440-1,460 range today.

Wall Street retreated as all 3 major indices closed broadly lower as traders came to their senses that Trump’s 90 day tariff pause is only temporary a reprieve and that the major trade war with China is still ongoing.
Meanwhile, the US 10-year yield jumped to 4.425%. In Hong Kong, the HSI extended its gains to remain above the 20,000 mark despite Trump’s massive 145% tariff imposition.
We believe an all-out trade war between China and the US is still ongoing hence market undertone remains uncertain.
On the home front, the FBM KLCI experienced a sharp rebound to above the 1,450 level along with a robust regional performance.
Though we expect bargain hunting activities to continue, prevailing market volatility may be a huge head wind for any meaningful uptrend.
As such, we expect the index to hover within the 1,460-1,480 range today.

Wall Street mounted its biggest rally as all 3 major indices surged after Trump announced a 90 day pause and lower his reciprocal tariff to a baseline 10% except for China where the rate was raised to 125%.
Meanwhile, the US 10- year yield climbed higher at 4.328%.
Over in Hong Kong, the HSI after a weak opening, managed to close higher to remain at above the 20,000 level.
Nonetheless, sentiment remained cautious over China’s stance on the trade war with the US.
Back home, the FBM KLCI surprisingly was trashed to around the 1,400 level attributed to a surge in foreign selling.
However, we believe an immediate rebound could happen today, taking cue from the rally on Wall Street hence expect the index to hover within the 1,400-1,450 range.
Nonetheless, we advocate investors to remain vigilant as the tariff situation is still fluid amid Trump’s flip-flopping policy.

Market Reports