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Market Daily Report: Bursa Malaysia Ends Higher In Line With Most Regional Markets

KUALA LUMPUR, Sept 20 (Bernama) -- Bursa Malaysia ended higher on Friday in line with most Asian markets, mirroring gains from Wall Street, where investors welcomed the US Federal Reserve's substantial interest rate cut. The FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 3.17 points, or 0.19 per cent, to 1,668.82 at the close from Thursday's close of 1,665.65. It opened 5.03 points higher at 1,670.68, trading between 1,668.48 and 1,674.04 throughout the session. In the broader market, gainers outpaced decliners 732 to 468, while 465 counters were unchanged, 850 untraded and 32 suspended. Turnover swelled to 4.19 billion units worth RM5.97 billion, from Thursday's 3.99 billion units worth RM4.08 billion. UOB Kay Hian Wealth Advisors head of investment research, Mohd Sedek Jantan, noted the FBM KLCI's gains were led by utilities, logistics, and banking stocks, reflecting improved market sentiment. Additiona
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US Industry Seeks Relief from Biden-Harris China Tariff Hikes as Decision Looms

The Biden-Harris administration is expected to finalize plans this week for steep tariff increases on certain Chinese imports. However, US industries are lobbying for the proposed duties to be softened, delayed, or even abandoned due to the potential economic impact. The tariffs, initially set to take effect on August 1 but delayed until September, target key sectors including electric vehicles, semiconductors, and strategic goods like steel and lithium-ion batteries.

Key Takeaways:

  1. Industry Pushback: Various US manufacturers, ranging from electric vehicle producers to utility equipment makers, have requested that the tariff increases be reduced or delayed. They argue that the higher costs could harm their competitiveness and disrupt supply chains.

  2. Tariff Increases: The proposed tariff hikes include a quadrupling of tariffs on Chinese electric vehicles to 100%, doubling duties on semiconductors and solar cells to 50%, and imposing new 25% tariffs on lithium-ion batteries and steel. These measures are intended to protect US industries from Chinese overproduction and unfair trade practices.

  3. Political Implications: The decision on tariffs is politically sensitive, especially with Vice President Kamala Harris now the Democratic Party’s presidential nominee. Easing the tariffs could open Harris to criticism from Republicans, who may accuse her of being too soft on China. On the other hand, maintaining the steep tariffs could lead to complaints about rising costs, even from within her own party.

  4. China's Response: China has vowed to retaliate against what it calls "bullying" tariff hikes. The timing of the US decision coincides with a planned meeting between US National Security Adviser Jake Sullivan and Chinese Foreign Minister Wang Yi, aimed at managing tensions between the two nations.

  5. Impact on Specific Industries:

    • The Port of New York and New Jersey has raised concerns about a new 25% tariff on Chinese-made ship-to-shore cranes, which could significantly increase costs for critical infrastructure.
    • Senators have expressed concerns about the impact of proposed tariffs on syringes, which could disrupt medical supplies.
    • Ford Motor has requested a reduction in tariffs on artificial graphite, essential for electric vehicle batteries.
    • Autos Drive America, representing foreign-brand automakers, has called for stable tariffs on batteries and critical minerals to support EV production and adoption in the US.

  6. Calls for Extended Tariffs: Some companies, like Finnish stainless steelmaker Outokumpu, support the proposed tariff increases and are advocating for even broader application to prevent circumvention of tariffs through other countries.

The final decision on these tariffs is expected by the end of August, with significant implications for US-China trade relations and domestic industries.

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