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.
Despite one of the worst market selloffs since the pandemic, President Trump signaled openness to reducing tariffs — but only in exchange for what he deems “phenomenal” concessions from trading partners.
Key Highlights
- Trump on Tariff Leverage:Speaking aboard Air Force One, Trump defended the sweeping new tariffs as a powerful negotiation tool, claiming “every country has called us” for talks.
- Conditional Flexibility:While not ruling out tariff reductions, Trump stated he would only consider rolling back duties if the offer on the table was “phenomenal.”
- More Tariffs Coming:Trump flagged new levies on semiconductors and pharmaceuticals are under review. Announcements on these sectors are expected soon.
“The chips are starting very soon. The pharma is going to start coming in... at a level that we haven’t really seen before.”— President Donald Trump
Market Response
| Asset Class | Reaction After Remarks |
|---|---|
| US Equities | ~$2.5T wiped from S&P 500 on Thursday |
| Russell 2000 | Enters technical bear market (–20% from peak) |
| Treasury Yields | 10Y fell back below 4% |
| US Dollar | Extended decline amid global risk aversion |
| Asian Pharma Stocks | Declined on looming US drug tariffs |
TikTok and Tariffs — A Bargaining Chip?
Trump suggested he’s open to tariff relief for China, should Beijing approve the sale of TikTok’s US operations.
A deal appears “very close,” with a Saturday deadline looming unless extended.
“Maybe China wants to get something in order to get TikTok approved.”— Trump
International Reactions
- Israel’s Offer Falls Short:Despite lifting tariffs on U.S. imports, Israeli exports will still face a 17% U.S. tariff. Netanyahu may visit next week.
- UK Tariff Status:The UK is subject only to the 10% baseline, a more favorable outcome compared to the EU’s 20% rate. Trump claims the UK is satisfied.
Strategic Viewpoint
Markets initially braced for a harsher response from Trump. The unexpected openness to negotiate injects a degree of uncertainty — and potential upside — depending on global reactions and deal-making progress.
“Got to give it a little bit of time. I think our markets are going to boom.”— Trump
Still, planned expansions to tech and pharma tariffs could further stress risk assets unless offset by credible diplomatic breakthroughs.
Investor Takeaway
While the White House may now be open to de-escalation, near-term volatility remains elevated as:
Negotiations begin under threat of rising tariffs.
Supply chain-sensitive sectors (tech, pharma) brace for disruption.
Central banks weigh inflation risks from new cost pressures.
Watch for:
TikTok sale updates
Foreign government responses
Timing and scope of upcoming chip and pharma tariffs
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