FX.co ★ Malaysia Stock Market Poised To Extend Winning Streak

The Malaysian stock market is on an upward trend, climbing approximately 30 points or 1.9 percent over five consecutive sessions. The Kuala Lumpur Composite Index is nearing the 1,560-point mark and is predicted to continue this growth trend on Wednesday.

This optimistic forecast for Asian markets is underpinned by a positive earnings season. European and U.S. markets showed strong growth, a trend expected to be mirrored in Asian markets.

On Tuesday, the KLCI ended slightly higher as financial sector gains were tempered by downturns in the plantation and telecommunications sectors. The index rose 2.05 points or 0.13 percent to end at 1,561.64, having fluctuated between 1,559.81 and 1,567.57.

In terms of the active players, Axiata fell by 0.76 percent while Celcomdigi dropped 0.97 percent. Conversely, the CIMB Group saw a 0.76 percent increase. Other movers included Genting which went up by 0.22 percent and Genting Malaysia which rose by 0.38 percent. IHH Healthcare made a notable jump of 1.46 percent.

There was a positive lead from Wall Street as Tuesday saw the major indices open higher and stay firmly in positive territory throughout the day's trading. The Dow surged 263.71 points or 0.69 percent to end at 38,503.69, NASDAQ spiked by 245.33 points or 1.59 percent to close at 15,696.64, and the S&P500 rallied 59.95 points or 1.20 to close at 5,070.55.

Quarterly earnings guided these market movements with strong results from companies such as Globe Life, GE Aerospace, Kimberly-Clark, and General Motors.

In economic news, the Commerce Department noted higher than expected new home sales in March, though building permits have declined. Traders are now eagerly awaiting further economic data this week including the first-quarter U.S. GDP data and the core personal-consumption expenditures (PCE) price index, the Federal Reserve's favored inflation metric.

Oil prices also saw an increase on Tuesday following a slowdown in U.S. manufacturing activity in April, prompting hopes that the Federal Reserve will soon commence lowering interest rates. West Texas Intermediate crude oil futures for June saw a rise of $1.46 or 1.78 percent to $83.36 a barrel.