The Malaysian stock market is on an upward trend, having experienced four consecutive profitable sessions and accruing nearly 30 points or a 2 percent increase during this period. The Kuala Lumpur Composite Index currently lies just over the 1,605-point mark, though there's a possibility that this upward momentum might begin to wane on Wednesday.
The global market forecast for Asia remains uncertain, with interest rates showing an equally unclear outlook. European markets have shown an increase whereas U.S markets showed mixed responses and remained mostly flat. It's expected that Asian markets will follow this pattern.
On Tuesday, the Kuala Lumpur Composite Index (KLCI) reported a modest increase following gains in the financial sector, agricultural stocks, and telecommunications. On that day, the index gained 8.29 points or 0.52 percent, closing at the 1,605.68-point mark with trades fluctuating between 1,600.66 and 1,610.32 points.
Key active entities included Axiata and CIMB Group, which respectively increased by 2.11 percent and retrieved 0.89 percent. IHH Healthcare, IOI Corporation, Kuala Lumpur Kepong, and Maxis also saw growths. Despite this overall positive trend, Celcomdigi and YTL Power experienced slight decreases.
The Wall Street lead provides little guidance as major averages showed an initial increase that faded, resulting in a mixed finish with almost no change. The Dow saw a minuscule increase, adding just 31.99 points, whereas the NASDAQ slipped 16.69 points with the S&P 500 gaining a slight 6.96 points.
This modest growth on Wall Street indicates continued optimism regarding the outlook for interest rates. Federal Reserve Chair Jerome Powell's comparatively dovish comments and weaker than expected job growth in April have largely put to bed the short-lived worries that the Fed would contemplate a rate hike.
However, afternoon trading saw a decrease in buyer interest following Minneapolis Federal Reserve President Neel Kashkari's suggestion that interest rates might need to remain as they are for an extended time.
Finally, West Texas Intermediate crude oil futures for June ended at a slightly lower $78.38 a barrel, a decrease of $0.10, due to concerns surrounding the global oil demand outlook.