Market Close KLCI up 9.33pts on Japan election, US job data

by **Cals** Tue 12 Jul 2016, 00:52

Market Close

[size=28]KLCI up 9.33pts on Japan election, US job data

By Chester Tay / theedgemarkets.com | July 11, 2016 : 6:05 PM MYT

KUALA LUMPUR (July 11): The FBM KLCI climbed 9.33 points or 0.6%, tracking Japan's Nikkei 225's 4% jump after Japan's ruling coalition won the parliament's Upper House election.

The win led to expectation of fiscal stimulus for Japan's economy. World share markets also reacted to better-than-expected US jobs report.

In Malaysia, the KLCI closed at 1,653.87 points. Across Asian share markets, Hong Kong's Hang Seng rose 1.54% while South Korea's Kospi gained 1.3%.

Reuters reported that Japan's Nikkei rose more than 4% following Friday's gains on Wall Street. Tokyo shares also reacted to Sunday's election win by the ruling Japanese coalition, which fed hopes that Prime Minister Shinzo Abe's economic policies, such as fiscal stimulus, would progress.

It was also reported that Asian shares enjoyed a relief rally on Monday as upbeat US jobs data soothed immediate concerns about the health of the world's largest economy, while the prospect of more policy stimulus helped keep sovereign yields near record lows. US job creation in June was much stronger than expected, increasing by 287,000 and easing fears that the US labour market may be faltering.

In Malaysia, Areca Capital Sdn Bhd chief executive officer Danny Wong Teck Meng told theedgemarkets.com that the share market was recovering from an oversold backdrop.

"There is an absence of selling pressure today. European market is uncertain, US is data driven," Wong said.

Across Bursa Malaysia, there were 439 gainers versus 327 decliners. Share trading volume was 1.61 billion worth RM1.6 billion.

Top gainer was British American Tobacco (M) Bhd while Dutch Lady Milk Industries Bhd was the biggest decliner. Borneo Oil Bhd was the most actively-traded counter.

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