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.
Markets were rattled after President Trump unveiled sweeping import tariffs far exceeding expectations. Equity futures and the U.S. dollar fell sharply as investors brace for potential volatility and a breakdown in global trade order.
What Happened
On "Liberation Day," President Trump announced:
A universal 10% tariff on all imports to the U.S.
Reciprocal tariffs on key trading partners:
China: 34%
Vietnam: 46%
European Union: 20%
Taiwan: 32%
An additional 25% tariff on automobile imports, effective after midnight.
“Trump is blowing up the postwar system that made the U.S. and the world more prosperous.”— Nigel Green, CEO, deVere Group
Market Reaction
Initial market optimism turned quickly as the full scale of tariffs became clear.
Equity Futures:
S&P 500 E-mini Futures: -3.4%
Nasdaq 100 Futures: -4.2%
Dow Futures: -2.2% (down 892 points)
Currency Markets:
Dollar Index (DXY): -0.5% to 103.74 after early gains
Flat against CAD and MXN
“Reciprocal doesn’t sound so bad... then the numbers came in — and down we went.”— Steve Sosnick, Interactive Brokers
Why It Matters
The scale of tariffs exceeds base-case forecasts, with some calling it “worse than worst-case.”
U.S. tariffs now near early 20th-century highs, with major uncertainty around duration and scope.
Analysts suggest the moves are partly a negotiation tactic, but warn of lasting damage if left unchecked.
“Eye-watering tariffs scream ‘negotiation tactic’... but will keep markets on edge.”— Adam Hetts, Janus Henderson Investors
Key Takeaways
Investor sentiment deteriorated sharply as tariff specifics were disclosed.
China’s 34% tariff was a major shock to expectations, triggering risk-off sentiment.
Uncertainty around policy duration adds to market volatility risk and caps upside.
Global supply chains face renewed disruption, with tech and auto sectors likely under pressure.
Watch for Thursday's market open and the release of the executive order text for further clarity.
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