Bursa Malaysia retraces higher despite gloomy backdrop

KUALA LUMPUR: The domestic market rebounded on the heels of the previous day's sharp losses as investors calmed following the US Federal Reserve chairman's remarks, which reiterated the central bank's commitment to bringing down inflation.

Despite the bounce, however, analysts believe the hawkish comments, coupled with Powell's acknowledgement there is a possibility the rate hikes will push the economy into a recession, will only reinforce the downside in equities.