Daily Market Report - 29 May 2026
- Wall Street scaled higher following reports that both the US and Iran have agreed on a 60-day MOU to extend the ceasefire and continue negotiations on Iran’s nuclear program.
- As a result, the Brent crude declined to USD93/barrel while the US 10-year yield eased to 4.453%. Asian markets took the brunt of sell-down yesterday as majority ended in the red.
- Sentiment have turned cautious over the uncertain signals from the geopolitical tension in the middle east. In Hong Kong, the HSI slid to just above the 25,000 mark or a 4-month low led by declines in financial, tech and retail stocks.
- Back home, the FBM KLCI succumbed to late heavy selling as the index closed at below the 1,685 level, which is around a 3-month low.
- Though we view this as an opportunity to bargain hunt, we prefer to advocate investors to remain vigilant as the impact from yen carry trade could be unfolding underscored by the hike in Japan 10-year yield.
- Thus, for today we expect the index to hover within the 1,680-1,700 range.
