Market Update 12 June 2013

• The selling in the Wall Street continued last night, with the Dow -0.76%, S&P -1.02% and Nasdaq -1.06%, as most equity markets across G7 and APXJ entered the “sell in June” scenario. Sentiments may have been doused by the lack of fresh stimulus from BOJ. 

• BOJ Governor, Haruhiko Kuroda’s conviction his April plan to double the nation’s monetary base will be enough to end deflation is confronting its biggest test with a sustained sell-off in stocks. 

• Asian stocks fell for a second day extending a global retreat, as investors weighed growing reluctance by central banks to add more stimulus after BOJ left its lending program unchanged, with no change in interest rates and asset buying targets. 

• With Asian markets still in a sell-off mode, the KLCI slipped by -0.46% on Tuesday. Local market sentiment has been dragged by capital outflows from the region, as the QE3 tapering continues to haunt prospect of markets in EM. 

• USD/MYR broke 3.1500 in yesterday’s trading followed by some profit taking towards the end of the day, USD/MYR then closed below 3.1500. The pair opened this morning at the 3.1300 level and expected range for today is 3.1300 – 3.1500