KUALA LUMPUR, Jan 7 (Bernama) -- Bursa Malaysia’s benchmark index rebounded from earlier losses to close at its intraday high on Wednesday, gaining 0.27 per cent in late trading as buying interest returned to selected heavyweights. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) advanced 4.48 points to 1,676.83 from Tuesday’s close of 1,672.35. The benchmark index opened 0.88 of-a-point lower at 1,671.47 and subsequently hit a low of 1,665.94 during the mid-morning session before gaining momentum toward closing. On the broader market, losers led gainers by 565 to 512, while some 526 counters were unchanged, 1,046 untraded, and 10 suspended. Turnover improved to 2.73 billion units worth RM2.76 billion versus Tuesday’s 2.66 billion units worth RM2.76 billion. Dealers said that investors were cautious following geopolitical developments in Asia.
Overall Impact of US Tariffs:
Credit negative for the Asia-Pacific (APAC) region.
Likely to disrupt existing supply chains.
Unlikely to accelerate China+1 strategy in the near term.
Countries That May Gain:
Malaysia, India, and Philippines (10–30% tariff band):
Could gain US market share via trade triangulation.
Trade diversion expected in the short term.
India:
Large domestic market.
Attractive for companies seeking low-cost operations and consumer access.
Benefits to unfold over the next few years.
Countries at Risk Despite Lower Tariffs:
Singapore, Australia, New Zealand (10% baseline tariff):
May still feel the pinch due to high global trade exposure.
Singapore especially vulnerable to global trade slowdown.
Commodity-Heavy Economies:
Australia, New Zealand, Indonesia:
Rely heavily on Chinese demand.
A Chinese slowdown could reduce commodity export demand.
Frontier Market Risks:
Sri Lanka, Pakistan, Bangladesh:
Weak current account balances.
Limited ability to import from the US.
Could face external pressure and slower economic growth.
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