KUALA LUMPUR: Investors in key Asian markets including Bursa Malaysia will have to brace for a volatile trading session on Sept 2 with heavy downside bias after Wall Street closed sharply lower overnight.
On Wall Street, US stocks fell for a third straight day on Sept 1, spooked by uncertainty over the health of financials and concerns that the explosive rally since March may have run ahead of economic reality, according to Reuters.
September began living up to its reputation as the worst month for stocks as elevated anxiety pushed the three major indexes down 2 percent for the day, their worst percentage losses since Aug 17.
The Dow Jones industrial average tumbled 185.68 points, or 1.96%, to close at 9,310.60. The Standard & Poor's 500 Index fell 22.58 points, or 2.21%, to 998.04. The Nasdaq Composite Index slid 40.17 points, or 2%, to 1,968.89.
At Bursa Malaysia, the 30-stock FBM KLCI could likely see investors taking money off the table. Another factor is that weakness across China markets may weigh on Bursa also.
"Since the local market is overbought, a cautious investment attitude should be adopted. Traditionally, the September-October period is one of a volatile nature (to the downside) for the DJIA.
"Weakness in the Chinese markets could also adversely affect the local market," Maybank Investment Bank Bhd wrote in a note.
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