Key Asian markets staged a strong rebound at the midday break on July 23, with Hong Kong’s benchmark index surging 2.3% in line with firmer commodity prices but there were also concerns about the sustainability of the corporate earnings.
At 12.30pm, the FBM KLCI rose 6.06 points or 0.53% to 1,154.76. Turnover was 377.97 million shares valued at RM562 million. Advancing counters beat decliners two to one, with 307 stocks up versus 153 losers and 211 unchanged.
Hong Kong’s Hang Seng Index rose 2.3% to 19,696.97, Singapore’s Straits Times Index added 0.9% to 2,4373.19, Japan’s Nikkei 225 1.10% up at 9,830.34 while Shanghai’s Composite Index added 0.69% at 3,319.22.
Reuters reported the Asian Development Bank as urging policymakers in emerging East Asia should continue to support domestic demand and growth despite tentative signs that the worst is over for global and regional economies.
"It remains far too early to say if these signs signal a recovery will be under way any time soon," the Manila-based bank said in a semi-annual review of East Asian economies and policy.
It said monetary policy in the region needed to remain expansionary until the recovery gained substantial traction or big inflationary pressures emerged.
Light crude oil rose 21 cents to US$65.61 while crude palm oil futures rose RM24 to RM2,107.
At Bursa Malaysia, UBG surged 60 sen to RM3.18 with 110,200 shares done, making it the top gainer. BAT, which is due to release its results today, rose 50 sen to RM45.25.
Among plantation related counters, PPB rose 20 sen to RM13.40, Sime Darby 15 sen to RM7.95 and IOI Corp two sen to RM4.96 but Sarawak Plantations fell seven sen to RM2..
Lion Diversified rose four sen to 59 sen and Lion Industries 10 sen to RM1.45 in active trade. Tenaga fell 15 sen to RM8.25 with 3.2 million shares done after it failed to get a tariff hike despite stronger third quarter earnings due to forex translation gains.Ireka lost 11 sen to 71 sen, Tanjong 10 sen to RM14.40 and Xingquan seven sen to RM1.56.