KUALA LUMPUR, May 31 — Bursa Malaysia and the regional bourses sank into the red on Wednesday amid uncertainties over whether the United States’ (US) Congress would resolve the debt ceiling impasse today.

Hong Kong’s Hang Seng Index led the regional decline, losing 1.94 per cent to 18,234.27, Japan’s Nikkei 225 fell 1.41 per cent to 30,887.88, Singapore’s Straits Times Index eased 0.90 per cent to 3,158.80, and China’s SSE Composite Index dipped by 0.61 per cent to 3,204.56.

The domestic barometer index, the FTSE Bursa Malaysia KLCI (FBM KLCI), ended the day 9.79 points or 0.70 per cent lower at 1,387.12 from 1,396.91 at yesterday’s close.

The key index opened 0.23 of-a-point weaker at 1,396.68, and subsequently fluctuated to an intraday low of 1,380.90, or 1.1 per cent lower, and an intraday high of 1,398.38 in the early morning session.

The broader market was bearish with decliners thumping advancers 521 to 360, while 387 counters were unchanged, 980 untraded and 33 others suspended.

Turnover jumped to 3.54 billion units worth RM5.25 billion versus 2.38 billion units valued at RM2.01 billion yesterday.

A major debt ceiling bill negotiated by US President Joe Biden and House Speaker Kevin McCarthy passed through a House Committee yesterday and will now go to the full House for a vote expected today.

Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the focus will remain on developments in the implementation of the US debt deal right up to the June 5 deadline.

He said the faster-than-expected fall in China’s manufacturing print showed that its economic recovery continued to lose steam, further triggering a sour market mood.

It was reported China’s Purchasing Managers’ Index (PMI) slipped to 48.8 this month from 49.2 in April, according to data released by the National Bureau of Statistics on Wednesday. A reading below 50 indicates contraction.

Nevertheless, Thong views the current low valuation in the local equities market to be attractive to entice bargain hunters.

“On the domestic front, sentiments may be cautious in view of external factors, however, we believe the FBM KLCI has been significantly undervalued.

“Hence, we expect the key index to hover within the 1,385-1,395 range for the remainder of the week, with immediate support at 1,370 and resistance at 1,400,” he told Bernama.