Daily Market Reports Issued By Rakuten Trade Research : Page 35

Wall Street maintained its slump on concerns that prevailing trade war may transform into an all-out trade war as Trump has threatened more tariffs on Canada.
Meanwhile, the US 10-year yield crept up to 4.242% as Trump’s tariffs may be inflationary.
Over in Hong Kong, the HSI declined amid growing fears that Trump’s tariffs are taking effects today.
As the countries affected are imposing retaliatory tariffs, many are concerned that this will escalate the prevailing global trade war to greater heights.
Back home, the FBM KLCI fared even worse as investors now at risk-off mode, unloaded their holdings in view of increasing volatility.
Though we are not advocating any aggressive bargain hunting as yet, we see the current scenario as an excellent opportunity for some stock pickings, especially the blue chips and defensive ones with decent dividend yields.
For today, we expect the index to hover within the 1,550-1,565 range with the hope that foreign funds will look at Asia as the preferred destination soon.

Wall Street slumped as Trump is going ahead with his tariffs imposed on Mexico, Canada and China commencing today.
Meanwhile, the latest data from manufacturing and construction sectors is showing a weakening US economy hence the decline in US 10-year yield to 4.159%.
In Hong Kong, the HSI improved but off the day’s high as investors remained cautious on heightening market volatility.
Nonetheless, China’s improving PMI (purchasing managers’ index) of the manufacturing industry for February boosted sentiment somewhat.
On the home front, the FBM KLCI ended slightly lower as selling by foreign funds remains quite evident following a bright opening.
The index ended just above the 1,570 level from the lack of fresh catalysts.
In view of the lacklustre performance by the local bourse of the late, we expect the index to hover within the 1,565-1,575 range today.

Wall Street rallied amid a choppy session as traders largely ignored prevailing headwinds namely the growing animosity between Zelensky and Trump coupled with the US economic slowdown.
In view of this, market undertone remains fragile as the US 10-year yield eased to 4.203%.
Over in Hong Kong, the HSI tumbled by almost 780 points to just below the 23,000 level on fresh concerns over Trump’s sweeping tariffs and a slowing US economy.
Back home, the FBM KLCI closed lower at below the 1,575 mark along with a weak regional performance as market volatility heightened.
In line with the daily circus from Trump, we can only expect daily narratives to dictate the market direction as fundamentals would be sidelined for the time being.
As such, we expect the index to hover within the 1,570-1,580 range today despite the recently concluded 4Q earnings that are deemed to be decent.

Wall Street’s slump continues as Trump’s reaffirms the tariffs on Canada and Mexico will commence on March 4 while also threatened to impose a 25% tariff on the EU.
Additionally, a jump in latest jobless claims illustrates a softening economy further erodes sentiment.
Meanwhile, the US 10-year yield edged marginally higher at 4.266%.
Meanwhile, Hong Kong equities ended lower as the HSI took a breather after a solid run-up recently.
Market undertone remains positive as many expect DeepSeek’s breakthrough will improve earnings of tech companies going forward.
Back home, the FBM KLCI also closed lower due to some profit taking activities.
Nonetheless, we are somewhat disappointed that recent buying activities were not sustainable hence the benchmark index may experience some minor consolidation.
As such, we anticipate the index to hover within the 1,580-1,590 range today.

Wall Street closed mixed despite a bright opening as sentiment remains clouded by talks of more tariffs on the EU.
Meanwhile, the less than optimistic view of the US economy saw the US 10-year yield eased further to 4.256%.
Meanwhile Hong Kong equities resumed with its climb after a brief correction as Nasdaq loss seems to be Chinese Tech gains.
As such, the HSI added another 750 points while targeting at the 24,000 level, which was last seen in Nov-2021.
On the home front, the FBM KLCI jumped by 20 points recouping that it lost the day before.
We were indeed surprised by the strong reversal of the local bourse partly also attributed to the regional uptrend.
We suspect the solid emergence of buyers could also be due to the more positive expectations of the domestic corporate results which are expected to be decent for 2024.
In view of this, we expect the index to trend between the 1,590-1,600 range today.

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