KUALA LUMPUR, Nov 5 (Bernama) -- Bursa Malaysia closed higher, buoyed by Bank Negara Malaysia’s (BNM) decision to maintain the Overnight Policy Rate (OPR) at 2.75 per cent, alongside positive cues from Wall Street. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 19.30 points, or 1.19 per cent, to 1,635.86 from Wednesday’s close of 1,616.56. The benchmark index opened 6.72 points higher at 1,623.28, and fluctuated between an intraday high of 1,642.44 and a low of 1,622.62 during the trading session. However, market breadth was negative, with losers outnumbering gainers 723 to 497, while 466 counters were unchanged, 1,075 untraded and 10 suspended. Turnover rose to 3.74 billion units valued at RM3.61 billion compared with yesterday’s 2.81 billion units valued at RM2.57 billion.
US President Donald Trump has reached a tariff agreement with Indonesia, lowering proposed duties from 32% to 19%on Indonesian exports to the US. In return, US goods will not face any Indonesian tariffs, and the US will gain full market access.
This deal is the first successful renegotiation following a wave of “tariff letters” sent by the White House earlier this month to multiple countries, ahead of an Aug 1 deadline for sweeping new duties.
Indonesia’s Commitments
US$15 billion in US energy imports
US$4.5 billion in US agricultural goods
50 Boeing aircraft purchases, many of them widebody 777s
Trump’s Statement
“They are paying 19%, and we are not paying anything. We are going to have full access to Indonesia.”
Trump added that any transshipments from higher-tariff countries through Indonesia will incur additional duties, effectively closing a potential loophole.
Market Reactions
Boeing Co (BA.US): Shares rose 0.8%
US Dollar Index: Gained 0.4%
S&P 500: Closed flat after briefly crossing 6,300
Despite limited details, this agreement signals positive movement in US-ASEAN trade, with implications for exporters, logistics, energy, and aviation sectors.
What This Means for Investors
1. Boeing & Industrial Exports:
The aircraft purchase is a win for US aerospace, particularly Boeing, amid global competition and order delays.
2. Commodities Trade:
Indonesia’s large energy and agriculture commitments should support US commodity exporters and related shipping/logistics sectors.
3. Policy Volatility Remains High:
Markets remain cautious. Trump’s prior announcements (e.g. with Vietnam) lacked documentation, and details are still thin. Investors should monitor execution risk and final agreements.
Broader Implications for ASEAN
This is Trump’s fourth post-pause framework after deals with:
Vietnam
UK
China (tariff truce)
Other nations are now racing to avoid the August tariffs:
Philippines is pushing for talks, with President Marcos Jr. planning a visit to Washington.
Thailand continues negotiations but fears domestic backlash.
Indonesia is also engaging the EU on a separate trade deal to diversify partnerships.
Analyst Outlook
Trump’s aggressive tariff stance is reshaping trade diplomacy. While it creates short-term deal wins (like Boeing’s orders), the lack of structure and clarity poses risks for businesses dependent on predictable trade flows.
Southeast Asia exposure will remain volatile, and countries balancing ties between the US and China may need to hedge via diversified trade routes.
➡️ Watchlist: Boeing (BA), commodity exporters, ASEAN ETFs, logistics firms
➡️ Risks: Delayed negotiations, retaliatory tariffs, policy inconsistency
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