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.
Key Developments
Massive Tariff Escalation
Chinese goods now face 104% total tariffs (up from 54% last week)
EU hit with 20%, Vietnam 46%, Japan 24%, among others
Tariffs apply to new imports arriving after May 27 (those already in transit exempt)
Market Impact
S&P 500 fell below 5,000, nearing bear market territory
$5.8 trillion in market cap wiped out from S&P 500 firms in four days
Nikkei fell over 3%, Korean won hits 16-year low
US stock futures point to a fifth straight day of losses
White House Position
Trump says tariffs are “permanent”, but also calls them “pressure tools” to drive trade negotiations
Talks scheduled with South Korea, Japan, and Italy’s PM next week
China has vowed retaliation, accusing US of “blackmail”
Consumer Impact
Economists warn of higher prices on goods like wine, sneakers, electronics
Reuters/Ipsos poll: Nearly 75% of Americans expect rising prices in next 6 months
Strategic View
Trump’s Approach
Uses tariffs to force renegotiation of trade deals
Accuses countries of currency manipulation and trade imbalances
Expected to announce “major” new tariffs on pharmaceutical imports soon
Global Response
Countries caught between negotiating or retaliating
Japan may link trade talks with currency exchange rates
Bottom Line The tariff war has intensified into a full-scale economic shock. While Trump insists it will “bring countries to the table,” global markets and businesses are bracing for sustained disruption. Investors are watching closely for retaliatory actions — and whether the US economy can withstand the blowback.
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