KUALA LUMPUR, July 29 (Bernama) -- Bursa Malaysia rebounded to close higher on Wednesday on selective buying of defensive stocks after a volatile trading session. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said consumer products and services stocks lifted the key index higher, overcoming lingering geopolitical concerns. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 3.08 points to 1,715.56 from yesterday’s close of 1,712.48. The benchmark index, which opened 1.91 points higher at 1,714.39, moved between 1,710.79 and 1,720.59 during the day’s trading. In the broader market, gainers outstripped decliners 550 to 476, while 612 counters were unchanged, 1,129 untraded, and 48 suspended. Turnover rose to 2.96 billion units valued at RM2.48 billion from 2.94 billion units valued at RM2.56 billion on Tuesday.
The fate of TikTok’s U.S. operations could soon shift again, as President Donald Trump confirmed on Friday that formal negotiations with China are set to resume early next week. Speaking aboard Air Force One, Trump stated that discussions could begin as soon as Monday or Tuesday, potentially involving Chinese President Xi Jinping or his representatives.
“We pretty much have a deal,” Trump told reporters, referring to a long-awaited plan to divest TikTok’s U.S. assets from its Chinese parent, ByteDance, into a new U.S.-controlled entity.
A Deal Delayed — and Revived
The TikTok restructuring deal had stalled this spring after China signaled resistance to approving any forced divestiture, especially amid escalating U.S. tariff threats. The Biden-era negotiations were originally aimed at transferring TikTok’s U.S. operations into a majority American-owned and operated company — a structure designed to address data privacy and national security concerns.
In June, Trump extended the deadline for ByteDance to sell TikTok’s U.S. assets to September 17, leaving the door open for a last-minute resolution. Now, with talks potentially restarting, the deal could regain momentum.
Market and Investment Implications
The revival of TikTok negotiations injects fresh uncertainty into tech markets, particularly around cross-border tech ownership, data governance, and geopolitical risks. For investors, this development has several key implications:
1. US Tech Players May Gain Clarity
Firms with exposure to digital advertising or social media — particularly Snap, Meta, and Alphabet — have seen TikTok as both a competitor and a regulatory proxy. A successful resolution could ease investor concerns over fragmented regulation and market access.
2. China Tech Exposure Faces Volatility
Chinese tech companies, especially ByteDance and peers like Tencent or Alibaba, could face renewed scrutiny if geopolitical tensions escalate around digital sovereignty. Investors may watch closely how Beijing responds, especially if the divestiture involves key algorithmic or AI-related assets.
3. Data Governance and Security Remain in Focus
Regardless of the deal’s structure, data localization, AI ownership, and cloud infrastructure are now permanent fixtures in the tech investment risk matrix. Companies enabling secure data architecture (e.g., cybersecurity, cloud security) may benefit as both sides seek compliant solutions.
Looking Ahead
Trump’s comments suggest the deal could be close — but with the U.S.-China trade backdrop still tense, especially ahead of the July 9 tariff deadline, the outcome is far from guaranteed.
“I am not confident, but I think so,” Trump said about China’s willingness to sign off. “I think the deal is good for China and it is good for us.”
Investors should continue to monitor regulatory risk, deal structure clarity, and Beijing’s stance, as the TikTok story remains a key bellwether for broader U.S.-China tech decoupling trends.
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