KUALA LUMPUR, April 3 (Bernama) -- Bursa Malaysia closed marginally lower on Friday, as cautious sentiment persisted, with investors remaining on the sidelines amid ongoing conflicts in West Asia, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 2.80 points, or 0.16 per cent, to 1,695.50 from Thursday’s close of 1,698.30. The benchmark index opened 5.82 points higher at 1,704.12, and moved between 1,693.65 and 1,708.12 throughout the day. However, market breadth remained positive, with gainers outnumbering losers 634 to 415, while 521 counters were unchanged, 1,077 untraded and 10 suspended. Turnover improved to 3.38 billion units worth RM2.95 billion from yesterday’s 3.20 billion units worth RM3.50 billion.
Global equities sold off sharply and tech stocks were hit hardest on Thursday as U.S. President Donald Trump unveiled sweeping new tariffs that far exceeded market expectations—deepening fears of a global trade disruption and an economic slowdown.
Market Reaction
| Asset Class | Move |
|---|---|
| Nasdaq Futures | -4.0% |
| S&P 500 Futures | -3.3% |
| FTSE Futures | -1.8% |
| Gold | Hit record above US$3,160/oz |
| Oil (Brent) | -3%, trading near US$72.56 |
| 10-Yr Treasury | Yields dropped 14 bps to 4.04% (5-month low) |
| Nikkei (Japan) | -3.9%, lowest in 8 months |
| Kospi (South Korea) | -2.0% |
| Vietnam ETF | -8.0% (after-hours) |
| Apple (AAPL) | -7.0% in after-hours; US$760B wiped from tech |
What Triggered the Selloff?
Trump rolled out a baseline 10% tariff on all imports, with much higher rates on key U.S. trade partners:
China: 54%
Vietnam: 46%
Japan: 24%
South Korea: 25%
EU: 20%
China and Taiwan were hardest hit due to deep exposure in tech supply chains.
Trump also closed a loophole used to ship low-value goods from China, affecting Chinese e-commerce exporters.
“The tariffs are so comprehensive and so much larger than we expected.”— Jeanette Gerratty, Chief Economist, Robertson Stephens
Key Themes
Tech Pressure: Magnificent Seven tech stocks lost US$760 billion in market cap post-announcement.
Safe-Haven Shift: Investors piled into gold, Treasuries, and the Japanese yen amid heightened risk aversion.
Recession Watch: Rate futures now price in a higher probability of Fed cuts; U.S. growth fears rising.
Currency Moves: The yen surged, while Asian currencies slumped; China’s offshore yuan hit a 2-month low.
“If these tariffs aren’t negotiated down promptly, recession expectations will rise dramatically.”— Tony Sycamore, IG Markets
Strategic Insight
Global supply chains, especially in East Asia, face mounting stress.
Trump's tariff shock may shift the conversation from "uncertainty" to "unfavorable certainty."
Investors should monitor:
Foreign retaliation
Earnings pressure on global-facing U.S. companies
Policy response from central banks, particularly the Fed and PBOC
Takeaway
This is not a drill. The scale and targeting of these tariffs mark a turning point in global trade policy—and investors are rapidly reassessing growth, inflation, and allocation strategies.
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