KUALA LUMPUR, April 8 (Bernama) -- The FTSE Bursa Malaysia KLCI (FBM KLCI) erased earlier gains to close marginally lower on Tuesday as mild bargain hunting activities were offset by cautious mode over ongoing global uncertainties. At 5 pm, the benchmark index slipped 0.24 of-a-point, or 0.02 per cent, to 1,443.56 from yesterday’s close of 1,443.80. The benchmark index opened 7.63 points firmer at 1,451.43 and climbed to as high as 1,454.58 in early trade before retreating to a low of 1,440.89 towards the end of the morning trading session. It then moved in a yo-yo mode during the afternoon session. In contrast, the broader market was positive with gainers outpacing decliners 669 to 367, while 419 counters were unchanged, 894 counters untraded, and nine others suspended. Turnover dwindled to 3.32 billion units valued at RM2.83 billion against 5.35 billion units valued at RM4.67 billion on Monday.
Key Takeaway:
President Trump’s sweeping new tariffs triggered a $3.1 trillion market rout, with the S&P 500 falling 4.8%, marking its steepest one-day loss since June 2020. The newly announced tariff regime — including a 10% baseline duty and country-specific levies as high as 54% — poses the largest trade shock in U.S. history, according to Macquarie.
Market Impact Highlights:
Nasdaq Composite slid nearly 6%, tech stocks led the decline.
Russell 2000 entered bear territory, plunging 6.6% from its Nov 2024 peak.
Dow Jones closed at its lowest since September, down 1,679 points (-4%).
Consumer staples were the sole sector in the S&P 500 to finish positive.
Bond yields dropped as risk-off sentiment intensified; 10-year UST yield fell near 4%.
Dollar weakened despite elevated geopolitical risk, as traders sought safe havens.
Strategic Context:
While investors hoped April 2 would provide clarity and a potential bottoming signal, the announcement instead delivered greater uncertainty around retaliation, supply chain shifts, and inflationary pressures. The average U.S. tariff rate has risen tenfold — from 2.4% in 2024 to an estimated 23%, the largest jump in 200 years.
Market View:
“This is the worst-case scenario for equities,” noted State Street’s Michael Arone. “Markets are now pricing in a prolonged and unpredictable trade war with global consequences.”
Investor Focus Ahead:
March Non-Farm Payrolls: Key gauge of labor resilience amid sentiment deterioration.
Fed Chair Powell’s speech: Markets will watch closely for updated policy cues as inflation risks and growth headwinds intensify.
Global retaliation risk: Key determinant of whether this becomes a transitory shock or sustained downturn.
Bottom Line:
Markets are in full risk-off mode, and sentiment may deteriorate further unless diplomatic channels open and tariff de-escalation begins. In the short term, volatility will remain elevated, with defensives and cash likely outperforming cyclicals and growth.
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