KUALA LUMPUR: The framework deal struck between the US and EU nations on Greenland quelled fears of a fresh tariffs war, sparking a global rebound in equities.
Malaysia's benchmark FBM KLCI jumped 8.08 points to 1,713.89, tracking the overnight rebound on Wall Street that saw the Dow Jones pick up nearly 600 points.
Domestic stocks looked poised to resume a rally following the return of risk appetite. The financial services sector inched higher towards the record level set on Jan 19, led by banks including Maybank, up 14 sen to RM11.24, CIMB gaining four sen to RM8.26, Public Bank adding four sen to RM4.78 and Hong Leong Bank climbing eight sen to RM24.
In its latest market outlook, Apex Research said Bursa Malaysia is expected to trade with a "constructive bias" today due to the improving global risk sentiment and steady domestic fundamentals.
It noted the scheduled release of Bank Negara's policy decision later today, where rates are widely expected to remain unchanged, providing near-term stability for equities.
"Externally, attention will turn to key US data releases, including final Q3 GDP growth, initial jobless claims and the Federal Reserve’s preferred core PCE inflation measure, which could offer further clarity on the Fed’s policy path.
"While data surprises may drive short-term volatility, sustained foreign interest and selective buying in earnings-visible large caps should continue to underpin the local market."
Among actively traded stocks, SMRT gained two sen to 21 sen as investors cautiously returned to the stock after it plunged on an earnings downgrade earlier this week.
Another counter that was the target of heavy selling ealrier this week, IJM, jumped eight sen to RM2.57 on news that the takeover offer by Sunway would proceed despite authorities' ongoing investigation into corruption.
Regionally, markets are reacting positively to what seems to be a happy resolution to the Greenland issue with South Korea's Kospi topping 5,000 points for the first time, and Australia's ASX200 up 0.8% in early trade.
However, details over the deal, which include "mineral rights" for the US, remain forthcoming. Notably, all three major US indices managed to only partially retrace the losses from the selloff earlier this week when US President Donald Trump threatened to impose another round of trade tariffs on its EU allies.
The Nasdaq remains 1.2% off its Friday close while the S&P500 is about 0.9% lower. The Dow Jones reclaimed the most ground, now standing only 0.5% off the previous week's close.
