KUALA LUMPUR, March 10 (Bernama) -- Bursa Malaysia rebounded to end higher today with the benchmark FBM KLCI reclaiming the 1,700 psychological level, supported by improved global sentiment after US President Donald Trump signalled a potential de-escalation of the Iran conflict, alongside Malaysia’s stronger Industrial Production Index (IPI) data. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) increased 27.51 points, or 1.64 per cent, to 1,701.68 from yesterday’s close of 1,674.17. The benchmark index opened 10.68 points higher at 1,684.85, its lowest point today, and hit a high of 1,703.61 in the late afternoon session. Market breadth was positive, with gainers thumping losers 929 to 382. A total of 361 counters were unchanged, 982 untraded and 19 suspended. Turnover declined to 3.60 billion units worth RM3.75 billion from yesterday’s 5.52 billion units worth RM5.87 billion.
Tensions between the U.S. and Japan are heating up—and this time, it’s about more than just trade. It’s about defending one of Japan’s economic pillars: autos.
Here’s what you need to know:
“Unacceptable.” Japan’s chief trade negotiator, Ryosei Akazawa, isn’t mincing words. Ahead of his seventh round of talks in Washington, he made it clear:
“We consider the 25% automobile tariff to be unacceptable.”
Why the strong pushback? Because Japanese carmakers aren’t just exporters—they’re local job engines. Japan produces 3.3 million cars annually in the U.S., more than double the 1.37 million they export there. Over $60 billion in investment. 2.3 million American jobs created. The message to Washington? Japan’s not the bad guy.
A Deal Still Out of Reach After six rounds of negotiation and a failed meeting between PM Ishiba and President Trump at the G7, the two sides remain stuck. The U.S. wants to slash its trade deficit—¥8.6 trillion last year, with cars making up 82% of that gap. Japan wants a package deal to avoid piecemeal penalties.
Akazawa is holding firm. With sectoral tariffs looming—25% on cars, 50% on steel and aluminum—Tokyo’s strategy is clear: don’t blink, don’t rush.
Countdown to July 9 That’s when tariffs automatically rise from 10% to 24% across the board unless a deal is reached. Sector-specific penalties will hit hard, and Japan’s export-heavy economy is already under pressure.
Auto shipments to the U.S. have slumped. A technical recession is now a real risk, especially with upper house elections just weeks away. The stakes? Enormous.
Money Master Take
Here’s what this means for your portfolio:
Auto Watch: Japanese automakers like Toyota, Honda, and Nissan could feel the squeeze from U.S. tariffs despite their local presence.
Yen Alert: Expect increased volatility if talks break down—potential safe haven flows into the yen could impact FX positioning.
Macro Risk: If Japan slides into recession, regional equities may feel the spillover. Global investors should brace for a ripple effect.
This isn’t just a trade headline—it’s a showdown with market-moving potential. When tariffs and global supply chains collide, portfolios feel the impact.
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