Wall Street reached record highs as traders expressed confidence in a soft landing for the US economy, bolstered by recent jobless claims data that came in lower than expected. The DJIA soared by 522 points, while the Nasdaq surged by 441 points, with the US 10-year yield edging up slightly to 3.719%.
Market Rally
In Hong Kong, trading resumed with vigor, as the Hang Seng Index (HSI) climbed past the 18,000 mark for the first time in two months. This rally was fueled by the Federal Reserve’s significant 50 basis point rate cut, which is expected to stimulate property purchases and economic activity. Property developers led the charge, benefiting from the prospect of lower borrowing costs, says Rakuten Trade.
Bursa
Back home, the FBM KLCI closed higher, driven by late buying activities after a sluggish start. The broad rally across the ASEAN region further supported this momentum. For today, the index is expected to hover within the 1,665-1,680 range. Meanwhile, the Ringgit continues to strengthen against the USD, currently trading at 4.21, marking a 30-month high. The Fed’s rate decisions play a crucial role in shaping market sentiment, and the recent cuts are likely to encourage further investments across various sectors.
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