Treasury yields, West Asia tensions keep investors cautious

KUALA LUMPUR: The FBM KLCI ended little changed at 1,671.6 points on Friday as rising US Treasury yields and escalating tensions in West Asia kept investors cautious.

Market breadth remained negative, with 574 decliners against 569 gainers, while 556 counters were unchanged. Healthcare fell 0.7%, Plantation declined 0.6% and REITs eased 0.5%, with losses recorded by Nestle Malaysia, Petronas Dagangan and Petronas Chemicals.

On a week-on-week basis, the local market gained 0.6%, led by Healthcare, Energy and Utilities, which advanced 7.2%, 6.3% and 5.1% respectively.

Asian markets ended mixed, with Japan’s Nikkei 225 rising 1.3% to 66,364.2, extending its gains to five consecutive sessions, while Hong Kong’s Hang Seng fell 1% to 24,510.1. China, South Korea and Taiwan were closed for holidays.

Treasury yields

European equities ended higher, supported by easing energy prices and reduced concerns over renewed inflationary pressures. The Euro STOXX 50 gained 0.5%, while the STOXX Europe 600 rose 0.4%.

US equities also advanced, with the S&P 500 and Nasdaq Composite gaining 0.5%, while the Dow Jones Industrial Average rose 479 points. Easing oil prices helped halt the recent surge in Treasury yields.

Oil prices declined following reports that the United States and Iran had moved closer to an agreement involving naval blockades on tankers in the Persian Gulf and economic measures against Tehran.

Technology stocks remained mixed, although Applied Materials and Lam Research gained 2.3% and 2.6%, while Microsoft advanced 3.7%.

For the week, the S&P 500, Dow Jones and Nasdaq Composite gained 2.3%, 0.2% and 4.5% respectively.

Source: Mercury

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