KUALA LUMPUR, Jan 7 (Bernama) -- The FTSE Bursa Malaysia KLCI (FBM KLCI) recovered from yesterday’s losses to close higher Tuesday, driven by bargain-hunting amidst the positive momentum on Wall Street overnight and most regional markets. At 5 pm, the market bellwether increased 4.32 points or 0.26 per cent to 1,629.79 compared with Monday’s close of 1,625.47. The index opened 0.97 of-a-point lower at 1,624.50 and moved between 1,624.50 and 1,634.27 throughout the day. However, the broader market was negative with losers outpacing gainers 614 to 490, while 537 counters were unchanged, 712 untraded and 10 others suspended. Turnover improved to 3.91 billion units valued at RM3.29 billion against Monday’s 3.47 billion units valued at RM2.66 billion. UOB Kay Hian Wealth Advisors head of investment research Mohd Sedek Jantan said optimism in the...
Asian markets were under pressure on Wednesday as concerns mounted over incoming US President Donald Trump’s plan to impose new tariffs on Mexico, Canada, and China. The yen extended gains, while commodity currencies like the Australian dollar struggled.
Key Market Movements
Equities:
- Japan’s Nikkei: Fell 0.9%, led by a 3% decline in the autos sector due to tariff fears and a stronger yen.
- Taiwan: Down 0.2%.
- South Korea’s Kospi: Barely rose 0.1%, after a 0.6% drop on Tuesday.
- Mainland Chinese blue chips: Declined 0.4%, though Hong Kong’s Hang Seng edged up 0.1%.
- MSCI Asia-Pacific Index: Dropped 0.1%, contrasting with gains in US markets overnight.
Currencies:
- Yuan: Weakened 0.1% to 7.2650 per dollar, near a four-month low.
- Mexican Peso: Fell to 20.7000 per dollar, nearing its recent trough.
- Canadian Dollar: Softened to C$1.40695, staying above Tuesday’s low.
- New Zealand Dollar: Rebounded 0.4% to US$0.5856 after the central bank’s 50-basis point rate cut, which disappointed expectations for a larger reduction.
- Japanese Yen: Strengthened to ¥152.50, its highest since Nov. 10.
Commodities:
- Gold: Gained 0.2%, reaching US$2,637 per ounce.
- Oil:
- Brent crude: Dipped 8 cents to US$72.73 per barrel.
- WTI crude: Fell 9 cents to US$68.68 per barrel, following ceasefire reports in the Middle East.
Bitcoin: Rose 1% to US$92,630, recovering slightly after a four-day retreat from its record high of US$99,830.
Key Drivers
Trump’s Tariff Plan:
- Trump pledged a 25% tariff on all imports from Mexico and Canada and a 10% levy on Chinese goods, aimed at addressing issues like illicit drugs and migrant flows.
- Markets remain cautious, anticipating bold actions under his administration, which is seen as having a clear strategy compared to his previous term.
Thin Trading:
- US Thanksgiving holiday on Thursday has thinned trading volumes, with many investors extending their break into Friday.
Yields and Inflation:
- US short-term Treasury yields eased further to 4.2458%, down from Friday’s four-month peak of 4.3810%.
- Investors are awaiting the PCE deflator, the Fed's preferred inflation gauge, due later on Wednesday.
Oil Market Sentiment:
- Prices remained subdued ahead of Sunday’s OPEC+ meeting, with the potential impact of a ceasefire deal between Israel and Hezbollah under scrutiny.
Outlook
Asian markets face heightened volatility as geopolitical risks and trade uncertainties intensify. While Trump’s tariff threats and a stronger yen weigh on equities, safe-haven assets like gold remain resilient. Investors will closely watch the Federal Reserve’s inflation data and upcoming OPEC+ decisions for further market cues.
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