KUALA LUMPUR, July 31 (Bernama) -- Bursa Malaysia ended higher on Friday as investors continued to accumulate blue-chip stocks in line with stronger performances across most regional markets. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.50 points to 1,724.90 from yesterday’s close of 1,720.40. The benchmark index opened 0.83 of a point higher at 1,721.23, and moved between 1,715.67 and 1,730.12 throughout the day. The broader market was positive with gainers outpacing losers 707 to 402, while 547 counters were unchanged, 1,085 untraded and 56 suspended. Turnover expanded to 3.03 billion units valued at RM3.56 billion from 2.49 billion units valued at RM2.25 billion on Thursday.
Tariff Optimism, Tech Rally Push HSI Higher After 3-Day Dip
Hong Kong’s equity market snapped a three-day losing streak on Tuesday, with investors betting that US President Donald Trump’s latest tariff threats could again morph into softer trade deals — a familiar playbook traders have dubbed the "Trump Always Chickens Out" (TACO) trade.
The Hang Seng Index (HSI) rose 1.1% to 24,148.07, recovering from a 1.4% cumulative drop over the past three sessions. The Hang Seng Tech Index outperformed with a 1.8% surge, led by gains in heavyweight names such as:
Kuaishou +5.2%
Baidu +3.6%
Xiaomi +2.4%
Alibaba +1.5%
Tencent +0.5% (also repurchased HK$501m in shares on Monday)
Onshore China indices also rallied, with the CSI 300 up 0.8% and Shanghai Composite gaining 0.7%, reflecting broader optimism across the region.
Market Drivers: Trade Talk Theater & Tactical Patience
Tariff Timing Relief: Trump's delay of new tariffs on 14 countries — including Japan, South Korea, Malaysia, and Indonesia — until August 1 has been interpreted by markets as buying room for negotiations. The 25–40% tariffs, though steep, come with an implicit invitation to deal.
Strategic Flexibility in Play: Market participants have become conditioned to Trump’s tariff cycle — initial shock, market sell-off, delayed implementation, and then partial walk-back or bilateral deals. This cycle fuels short-term bullish positioning.
“Whether it ends in a hard split or another handshake depends on how the next few weeks unfold,” said Stephen Innes of SPI Asset Management. “Until then, the tape walks a fine line between tactical jitters and strategic patience.”
Additional Watchpoints for Investors
US-China 90-Day Truce Nears Expiry: Treasury Secretary Scott Bessent hinted at upcoming talks with Beijing ahead of the September truce deadline, keeping hope alive for easing tensions.
China Deflation Risks: June CPI (-0.1% YoY est.) and PPI (-3.2% YoY est.) data due Wednesday may refocus attention on China’s persistent deflation, with potential policy easing implications.
Broader APAC Mixed:
Nikkei 225 +0.3%
Kospi +1.8%
ASX 200 flat
Investor Takeaways
Short-Term Tactical Rally: The HSI bounce is driven more by positioning and sentiment than fundamentals. Traders are capitalizing on Trump's predictable tariff rhetoric — but may need to pivot quickly if tone hardens.
Tech Stocks as Beta Plays: In this environment, Hong Kong-listed tech stocks offer amplified exposure to any resolution tailwind in US-Asia trade relations.
Macro Risks Still Linger: China's deflationary pressure and US policy unpredictability cap upside. Investors may want to trade with tight stops or seek hedged exposure.
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