FX.co ★ Malaysia Bourse May Extend Monday's Gains

The Malaysian stock market experienced a rebound on Monday, recovering from a single-session dip that interrupted a three-day winning streak during which it accumulated nearly a dozen points or 0.7 percent. The Kuala Lumpur Composite Index (KLCI) now hovers just below the 1,630-point mark and is anticipated to open positively again on Tuesday. Optimism regarding interest rate forecasts is bolstering global confidence in Asian markets. Although European markets were down, U.S. markets were up, suggesting that Asian markets may follow the trend set by their American counterparts.

On Monday, the KLCI closed modestly higher, driven by gains in financial shares, telecommunications, and plantation sectors. The index rose by 10.76 points, or 0.66 percent, to finish at 1,629.82, within a trading range of 1,619.19 to 1,632.69. Key performers included Axiata, which surged 3.27 percent, and Celcomdigi, up by 2.22 percent. CIMB Group gained 0.70 percent, Genting soared 2.62 percent, and Genting Malaysia spiked 2.37 percent. Other notable performances included IHH Healthcare, which rose 0.16 percent, IOI Corporation gaining 0.81 percent, and Kuala Lumpur Kepong adding 0.30 percent. Telecommunication companies Maxis and Maybank improved 0.28 percent and 1.00 percent respectively, while several others like Hong Leong Financial, MISC, and MRDIY showed moderate gains. Conversely, Petronas Chemicals and QL Resources dipped slightly, by 0.82 percent and 0.30 percent, respectively.

Wall Street displayed a positive lead, with major indexes opening higher on Monday and maintaining that momentum throughout the session, despite somewhat choppy trading conditions, to reach new record closing highs.

The Dow Jones Industrial Average rose by 210.82 points, or 0.53 percent, to close at 40,211.72. The NASDAQ increased by 74.12 points, or 0.40 percent, to end at 18,472.57, while the S&P 500 climbed 15.87 points, or 0.28 percent, to finish at 5,631.22.

Support for U.S. markets largely stemmed from comments by Federal Reserve Chair Jerome Powell, who indicated that the central bank would not wait for inflation to reach 2 percent before cutting interest rates.

In economic news, a report from the Federal Reserve Bank of New York indicated that regional manufacturing activity contracted at a slightly accelerated pace in July.

Crude oil futures settled lower on Monday, impacted by political uncertainty following an assassination attempt on former President Donald Trump and weak economic data from China. Specifically, West Texas Intermediate crude oil futures for August declined by $0.30 to settle at $81.91 per barrel.