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 stocks and currencies fell sharply Thursday as disappointing Chinese manufacturing data and the looming August 1 US tariff deadline fueled risk-off sentiment across the region.
Key Moves:
Currencies:
Philippine peso slid nearly 1% to a five-month low of 58.37/USD, heading for its worst month since October.
Taiwan dollar fell 0.8% to a seven-week low, extending a six-session losing streak.
Malaysia’s ringgit dropped 0.6% for a fifth consecutive session; Indonesia’s rupiah slipped 0.5%.
The MSCI EM currency index is set to snap a six-month rally, losing over 1% in July.
Equities:
MSCI Emerging Asia stock index slid over 1% to a two-week low, though still up more than 2% for July.
Hong Kong and mainland China stocks led declines on weak PMI data.
Manila fell over 1%, Singapore dropped 0.9%, while Kuala Lumpur and Jakarta lost over 0.4% each.
Drivers:
China Slowdown: July PMI showed manufacturing activity contracted for the fourth straight month, amplifying concerns over regional growth.
Tariff Deadline: US President Donald Trump’s August 1 deadline for imposing new tariffs spurred last-minute trade talks. South Korea secured a deal with reduced 15% tariffs, prompting a 0.3% gain in the won. Other nations including Vietnam, Indonesia, Japan, Cambodia, Thailand and the Philippines have also reached agreements, leaving Malaysia and India racing to secure terms.
Market Backdrop:
US Dollar Strength: The greenback surged to a two-month high after the Fed held rates steady but signaled less dovish policy.
India Under Pressure: The rupee fell 0.4% to a five-month low as markets awaited the outcome of ongoing negotiations with Washington amid Trump’s threat of a 25% tariff.
Bottom Line: Regional markets remain on edge as weak Chinese data intersects with heightened trade uncertainty. Currencies like the ringgit, peso, and rupiah are expected to stay under pressure until tariff risks are resolved, with volatility set to persist into August.
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