Malaysia Bourse Set To End Losing Streak

The Malaysia stock market has moved lower in back-to-back sessions, although it has fallen little more than a single point in that span. The Kuala Lumpur Composite Index now rests just beneath the 1,600-point plateau although it may find support on Monday.

The global forecast for the Asian markets is upbeat on renewed expectations for fiscal stimulus. The European and U.S. markets were sharply higher and the Asian bourses are tipped to open in similar fashion.

The KLCI finished barely lower on Friday following mixed performances from the financials, plantations and industrials.

For the day, the index eased 1.07 points or 0.07 percent to finish at 1,599.22 after trading between 1,590.18 and 1,600.17. Volume was 1.8 billion shares worth 1.4 billion ringgit. There were 390 gainers and 325 decliners.

Among the actives, Sime Darby Plantations plummeted 2.29 percent, while MISC surged 1.53 percent, AMMB Holdings tumbled 0.76 percent, RHB Capital skidded 0.72 percent, Petronas Chemicals retreated 0.69 percent, Genting declined 0.66 percent, Digi.com jumped 0.60 percent, Kuala Lumpur Kepong advanced 0.50 percent, Maybank dropped 0.47 percent, Sime Darby sank 0.46 percent, Top Glove shed 0.45 percent, Axiata and CIMB both collected 0.40 percent, Dialog Group added 0.28 percent, IHH Healthcare gained 0.18 percent and Petronas Gas, Public Bank and IOI Corporation were unchanged.

The lead from Wall Street is broadly positive as stocks opened higher on Friday and the gains accelerated as the day progressed.

The Dow added 306.61 points or 1.20 percent to 25,886.01, while the NASDAQ jumped 129.37 points or 1.67 percent to 7,895.99 and the S&P 500 rose 41.08 points or 1.44 percent to 2,888.68. For the week, the Dow shed 1.5 percent, the NASDAQ lost 0.8 percent and the S&P fell 1 percent.

The rally on Wall Street reflected optimism about the world's central banks providing stimulus in order to prevent a global recession. European Central Bank official Olli Rehn expressed the need for significant easing in September to support the flagging eurozone economy, spurring investors.

The expectations for more stimulus fueled a pullback by U.S. treasuries and a subsequent increase in bond yields. The yield on the benchmark ten-year note had dropped below the two-year yield on Wednesday, sparking fears of an impending recession and a sell-off on Wall Street.

In economic news, the University of Michigan noted a significant deterioration in U.S. consumer sentiment in August. Also, the Commerce Department reported an unexpected slump in housing starts in July but a sharper than expected increase in building permits.

Crude oil futures settled higher Friday as recession fears faded amid hopes global central banks will announce further stimulus to revive economic growth. West Texas Intermediate Crude oil futures for September ended up $0.40 or 0.7 percent at $54.87 a barrel.