KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
President Donald Trump’s sweeping “reciprocal” tariffs officially kicked in early Wednesday, sending shockwaves through global markets and escalating tensions in what’s shaping up to be the most aggressive trade war in decades.
Among the harshest measures: a 104% tariff on Chinese goods, nearly double the rate announced last week. The fallout has been swift — U.S. and global stocks are tumbling, safe-haven bonds are being sold off in a panic, and fears of a global recession are mounting.
The S&P 500 has now endured its deepest drop since its inception in the 1950s, nearing official bear market territory.
Markets Reel, Bonds Buckle
The turmoil has even spread to U.S. Treasury bonds, once considered the safest of assets, with forced selling triggering liquidity concerns. Stocks in Europe and much of Asia continued their descent, while China’s market found some footing thanks to government support.
Beijing has vowed to retaliate.
“China will never accept this kind of bullying,” said Chinese Foreign Ministry spokesman Lin Jian, calling the tariffs an act of pressure and blackmail.
Central Banks React
In response to the worsening outlook, central banks in India and New Zealand cut interest rates, with more expected to follow. Policymakers in Poland and other economies say Trump's tariffs strengthen the case for rate cuts to cushion the blow.
“Countries Want to Deal” — Trump
Despite the market chaos, Trump remained defiant.
“We have a lot of countries coming in that want to make deals,” he said Tuesday, suggesting pressure is working.
Talks are scheduled with South Korea, Japan, and Vietnam, while Italy’s prime minister is expected in Washington next week. But with U.S. consumers already bracing for price hikes, analysts warn the damage may already be done.
Consumers Brace for Impact
A recent Reuters/Ipsos poll found that nearly 75% of Americans expect prices to rise in the next six months. Companies like Bang & Olufsen are already raising prices to offset tariff costs.
Products already in transit to the U.S. before the deadline may escape the new duties — but only if they arrive before May 27.
The latest 104% tariff package comes on top of Trump’s 10% blanket import tax, which began Saturday and also targets close allies like the EU, now facing a 20% tariff and preparing countermeasures.
Trump has hinted he’s not done. He told Republican lawmakers Tuesday night that “major” pharmaceutical tariffsmay be next.
Recession Warnings
JP Morgan now sees a 60% chance of a global recession by the end of 2025. Germany’s finance minister warned the country could tip into another recession if trade tensions continue to escalate.
As the tariff war drags on, both U.S. consumers and global markets are left hoping for relief — or at least clarity.
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