A just reported 6.9% is higher then forecast of 6.8%. However is under overall yearly target of 7%. China decisively cut its rate again for both benchmark interest rate and bank reserve ratio.
It isn’t a bad news but we advise to closely monitor the signal of show hand. We believe still another 2 to 3 years ahead. If US is not able to raise its rate with China continue to weaken and it’s internal demand fail to stimulate the grow rate. A sizable recession may really come globally.
In short term, KLCI will be stimulated further with this news as China is Malaysia largest trade partner now.