KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
AUG 1 DEADLINE LOOMS, BUT THE DOOR TO NEGOTIATIONS STAYS OPEN
U.S. President Donald Trump has officially unveiled a new round of tariff demands, escalating trade tensions across Asia — but in a move watched closely by investors and governments alike, he signaled that the Aug. 1 deadline is “firm, but not 100% firm.”
Who’s Hit — and How Hard?
Japan & South Korea: 25% tariffs
South Africa: 30%
Malaysia, Myanmar, Laos, Indonesia, Thailand: Fresh levies unveiled
Warning issued: Transshipped goods from China to avoid tariffs will still be penalized
This latest round is part of Trump’s broader trade offensive aimed at reducing Chinese trade influence through third-party countries.
Market Reactions
S&P 500 fell 0.8%
Korean won emerged as Asia’s best-performing currency
Asian equity markets traded in a tight range, reflecting investor caution
Australian bonds dipped and AUD strengthened ahead of a rate cut decision
ASEAN in the Crosshairs
Economists warn that Southeast Asian markets could face prolonged headwinds, especially due to rising scrutiny over transshipment of Chinese goods.
“ASEAN’s underperformance could continue,” said Manishi Raychaudhuri of Emmer Capital. “China exports more to ASEAN than to the US or EU.”
Malaysia has responded swiftly, expressing a willingness to pursue a fair trade pact and resolve outstanding issues through dialogue.
Thailand, meanwhile, offered to slash import tariffs on 90% of U.S. goods — including zero duties on some — in hopes of reducing its 36% tariff exposure.
Analysts: It's Politics, Not Policy — Yet
Trade experts say we’re not much clearer now than 90 days ago. The UK and Vietnam’s agreements with the U.S. remain vague and lacking detail, while negotiations appear largely aimed at isolating China economically.
“This is less about tariffs and more about a broader geopolitical shift,” said Stephen Olson of the ISEAS–Yusof Ishak Institute.
Investor Takeaway
While the headline tariffs rattle markets, Trump’s ambiguity on enforcement leaves room for continued diplomacy. Equity investors in ASEAN and exporters should brace for volatility, but also watch for opportunities in undervalued sectors should negotiations soften the blow.
Bottom Line: The tariff storm is real — but it’s not over. Watch the Aug. 1 date, but don’t rule out a deal.Investors should position with flexibility and be alert for buying opportunities amid short-term fear.
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