Investors look for directions from China (ext: Edge)

Investors will continue to be cautious on Thursday, Aug 20 despite the better closing on Wall Street as they focus on the China markets, where the Shanghai Composite Index tumbled 4.3% the previous day.

Overnight, Wall Street closed higher shaking off a slide in China's equity market, as investors responded favourably to a surprising drop in crude oil stockpiles that might suggest an improving demand outlook.

The Dow Jones industrial average ended up 0.66% to end at 9,279.16. The Standard & Poor's 500 Index rose just 0.69% to 996.46. The Nasdaq Composite Index added 0.68% to 1,969.24.

On Bursa Malaysia, investors would look for directions from China. Worries that stocks might have run ahead of fundamentals have re-emerged in recent days, leading to the high volatility at global equity markets.
 
Investors would likely stay on the sidelines and there could also be some extended profit taking, though at a smaller scale, as the local market had run up less than its regional counterparts.

The local economic landscape is still cautious despite the second consecutive month in the decline in the consumer price index wile manufacturing sales and jobs creation in the manufacturing sector have shown some recovery on a on-month basis.