Malaysian bonds are facing increased vulnerability to outflows as local yields rise alongside US Treasuries , following Donald Trump’s election win. Analysts suggest this trend could continue, particularly given the sharp ringgit depreciation against a strengthening dollar. Malaysian bonds saw net outflows of RM11.2 billion (US$2.6 billion) last month — the largest since March 2020 — according to Bank Negara Malaysia (BNM) data. This outflow, coupled with a sell-off in US Treasuries and a weakening ringgit, is pressuring yields higher. Notably, the 90-day correlation between Malaysian bonds and the ringgit has risen to 0.63, signaling that as the ringgit weakens, bond yields tend to rise. “The election outcome suggests continued dollar strength ,” said Philip McNicholas, Asia sovereign strategist at Robeco Group in Singapore. “With Treasury yields steepening, there’s a risk of further foreign withdrawal from emerging-market (EM) assets , especially Malaysia’s lower-yielding bonds.”
LG Energy Solution Ltd saw its operating profit for the third quarter tumble nearly 40% due to weak demand for electric vehicles (EVs). The South Korean battery maker reported a profit of 448.3 billion won (US$323 million) for the three months ending Sept 30, which, while slightly higher than analyst estimates of 440.3 billion won, represented a steep drop from a year earlier.
Excluding tax credits from the US Inflation Reduction Act, the company posted an operating loss of 17.7 billion won. Revenue also fell 16.4% to 6.9 trillion won, reflecting the global challenges the company faces amid the slowdown in EV demand.
Global automakers are scaling back their electric ambitions as consumer interest in EVs declines, compounded by uncertainty surrounding the upcoming US presidential election. Former President Donald Trump has threatened to scrap the Biden administration’s EV policies, further clouding the market outlook.
“Competition in the global EV market is intensifying, as macroeconomic uncertainties and geopolitical risks persist,” said LG Energy's chief financial official Lee Chang Sil. He also noted that Chinese manufacturers are ramping up exports, while LG’s key customers are increasingly turning to in-house battery production.
Looking ahead, LG Energy warned that the fourth quarter would present significant challenges, with lower metals prices and a one-off inventory adjustment expense weighing on its results. The company plans to lower capital expenditure next year, focusing only on essential investments.
To offset slowing EV demand, LG Energy is working to diversify its business portfolio and accelerate production of energy storage systems. The company aims to more than double sales by 2028 by expanding beyond EV batteries.
Despite the difficult quarter, LG Energy's stock rose 1% in Seoul trading following the earnings release, contributing to a 27% rise in the third quarter, which snapped five consecutive quarters of decline.
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