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...
Asian markets fell on Tuesday as investors reassessed the long-term impact of the new U.S.-EU trade deal and the reality that higher tariffs are here to stay, raising concerns over global growth and inflation.
Key Market Moves
MSCI Asia-Pacific ex-Japan: Down 0.7%
Japan’s Nikkei: -0.8%
China Blue Chips: -0.1%
Euro: Flat at US$1.1592 after its biggest drop since May (-1.3% overnight)
Brent Oil: +0.1% to US$70.10, following a 2.3% jump Monday
Tariff Shock
The U.S.-EU pact avoided the worst-case scenario but imposed a 15% levy, up sharply from the 1–2% rates before Trump took office.
Trump warned of a potential 15–20% “world tariff” on countries without deals, the highest global rate since the 1930s.
JPMorgan economists said the move is “a significant tax increase on EU exports” and “unwinds a century of U.S. leadership in free trade.”
Other Market Drivers
Oil Prices: Spiked on Trump’s 10–12 day deadline for Russia to act on Ukraine or face tougher sanctions on oil exports.
U.S. Markets: S&P 500 and Nasdaq futures edged up (0.1% and 0.2%) ahead of mega-cap earnings from Apple, Microsoft, and Amazon.
Treasuries: 10-year yield held at 4.408% with markets pricing in a 97% chance the Fed holds rates steady this week.
Economic Data in Focus
U.S. Q2 GDP: Expected to rebound to 2.4% annualized after Q1’s 0.5% contraction.
Job Openings: Due later Tuesday ahead of Friday’s key payrolls report.
Bank of Canada: Also expected to hold rates at 2.75% as it monitors U.S. trade talks.
Bottom Line: Relief from the U.S.-EU trade deal is fading as investors confront the drag of higher global tariffs. With oil rising and central banks holding steady, markets are bracing for a slower growth outlook and more inflation pressure.
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