KUALA LUMPUR, March 14 (Bernama) -- The FTSE Bursa Malaysia KLCI (FBM KLCI) ended the week slightly higher, in line with regional indices despite the weaker performance on Wall Street overnight. At 5 pm, the FBM KLCI rose 2.12 points or 0.14 per cent to 1,512.15 from Thursday’s close of 1,510.03. The market bellwether opened 10.08 points lower at 1,499.95, and moved between 1,493.29 and 1,516.25 throughout the day. On the broader market, gainers outpaced losers with 680 to 292, while 437 counters were unchanged, 1,009 untraded, and 13 suspended. Turnover was marginally lower at 3.24 billion units worth RM2.5 billion from 3.25 billion units worth RM2.90 billion on Thursday.
Asian stocks followed Wall Street’s lead on Tuesday, falling sharply as fears over a potential U.S. recession deepened, triggered by concerns about a wide-ranging trade war and U.S. economic slowdown. Investors sought safe-haven assets like the Japanese yen, while global stock markets continued their slide.
Key Market Moves:
U.S. Stock Market Woes: The S&P 500 dropped 2.7%, and the Nasdaq tumbled 4.0%—its worst one-day percentage loss since September 2022. Futures for both indices slid by 1% in Asian trading hours on Tuesday.
Asia-Pacific Stocks in the Red: Japan’s Nikkei and Taiwan's stocks plunged by about 3%, reaching their lowest levels since September. The MSCI Asia-Pacific index outside Japan dropped by more than 1%. Even Chinese stocks, which had performed well earlier this year, were not immune, with the Hang Seng Index falling by 1.5%.
European Markets Follow Suit: European futures pointed to a lower open, with DAX futures down 0.8%and Eurostoxx futures falling 0.9%, suggesting the sell-off could extend further.
Recession Fears Sparked by Trump’s Comments:
Trump's Uncertainty: U.S. President Donald Trump fueled market concerns during a Fox News interview, where he spoke about a "period of transition" and refrained from predicting whether his trade tariffs would result in a recession. These comments added to market fears, causing stocks to slide and the U.S. dollar and Treasury yields to fall.
Rising Tariff Worries: In addition to the ongoing trade war with countries like China and Mexico, Trump warned about reciprocal tariffs on Canadian goods like dairy and lumber, stoking further concerns.
Market Reactions:
Bond Yields: The U.S. 10-year Treasury yield fell 5 basis points on Tuesday, after dropping 10 basis points in the previous session, marking the largest drop in nearly a month. The 2-year note yield, which tracks interest rate expectations, also dropped to a five-month low.
Fed Easing Expectations: Traders now expect the Federal Reserve to ease by 88 basis points this year, up from 75 basis points just the day before, indicating expectations for a potential slowdown in the U.S. economy.
Safe-Haven Demand: As concerns grew, the Japanese yen rose by 0.3% against the dollar, hitting a five-month high. The Swiss franc also strengthened, hovering near its three-month high.
Commodities and Oil Prices Fall:
- Oil Prices Drop: Oil prices continued their downward slide, with Brent crude falling 0.65% to $68.83 a barrel and West Texas Intermediate crude losing 0.82% to $65.49. Concerns over a slowing global economy and increased supply from OPEC+ have weighed on energy demand.
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