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...
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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