KUALA LUMPUR: Bursa Malaysia opened higher on Wednesday morning, as the latest data out of the US show support for rate cuts.
The US posted weaker-than-expected labour market data on Tuesday.
At 9:10 am, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 0.23 per cent, gaining 3.68 points to reach 1,619.08, up from yesterday's close of 1,615.40.
The broader market stayed positive with 309 gainers outnumbering 192 losers, while 327 counters remained unchanged.
Rakuten Trade Sdn Bhd equity research vice president Thong Pak Leng mentioned that the FBM KLCI surged beyond the 1,610 level, as the recent sell-off on the local stock market was considered to have been excessive last week.
"We believe the buying to be foreign induced thus expect this to continue enabling the benchmark index to break out from its recent consolidation."Therefore, we believe the index to hover between the 1,620-1,630 range today," he said.
Thong also remarked that it will be intriguing to see if the European Central Bank (ECB) decides to lower interest rates later today.
On the regional front, Thong noted that traders are anticipating May's payrolls data tomorrow, which, if weak, could prompt the Federal Reserve to reduce interest rates.
The Dow Jones Industrial Average (DJIA) gained 140 points while the Nasdaq added 28 points as the US 10-year yield eased to 4.33 per cent.
Over in Hong Kong, the Hang Seng Index (HSI) rose marginally driven by interests in property stocks following the recent easing in purchase restrictions coupled with hopes for the Federal Reserve to lower rates as the US economy cools down.