KUALA LUMPUR, July 30 (Bernama) -- Bursa Malaysia's key index closed at an intraday high today, supported by continued buying interest even as renewed geopolitical tensions and a weaker overnight lead from Wall Street following the US Federal Reserve's (Fed) decision to stand pat on interest rates weighed on broader sentiment. The Fed has decided to hold rates steady for the fifth consecutive meeting, with the Federal Funds Rate unchanged between 3.50 per cent and 3.75 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.84 points to 1,720.40 from yesterday’s close of 1,715.56. The benchmark index, which opened 1.14 points lower at 1,714.42, hit its lowest level of 1,710.69 in early trade before gaining momentum for the rest of the day. However, the broader market was negative with losers outpacing gainers 581 to 411, while 612 counters were unchanged, 1,173 untraded, and 87 suspended. Turnover declined to 2.49 billion units valued at RM2.25 billion from ...
Tariffs Trigger Regional Selloff
Asian equities retreated Friday after the US imposed tariffs ranging from 10% to 41% on dozens of trading partners, adding pressure to already fragile sentiment. Key rates included 25% on India’s exports, 20% on Taiwan, 19% on Thailand and 15% on South Korea. Canada saw duties raised to 35%, while Mexico secured a 90-day reprieve for broader negotiations.
Regional Impact
MSCI Asia ex-Japan: -0.7%, weekly loss now at 1.8%
South Korea Kospi: -3%
Taiwan: -0.9%
Nikkei: -0.4%
China A-shares: flat; Hang Seng eked +0.2%
Market Commentary
Analysts noted the market reaction has been contained due to recent tariff deals with the EU, Japan and South Korea cushioning sentiment. “The market sees these tariffs as potentially negotiable and temporary,” said Tony Sycamore of IG.
US Macro Focus: Jobs Report
Attention now shifts to July non-farm payrolls. Consensus calls for +110,000 jobs and a jobless rate uptick to 4.2%. A stronger-than-expected report could erase the 39% probability of a September Fed rate cut priced in futures, down sharply from 65% pre-FOMC.
Currencies & Bonds
Dollar Index: +2.5% WTD to 100.1, 2-month high
Yen weakens to ¥150.7, highest since March
10Y UST yield: +1 bps to 4.374%
Commodities
WTI crude: +0.1% to US$69.36
Brent: +0.2% to US$71.84
Gold: steady at US$3,286/oz
Investor Takeaway
The tariff escalation injects near-term volatility into Asia-Pacific markets, with tech-heavy indices bearing the brunt. US jobs data later today will be pivotal in shaping Fed expectations and determining if the dollar’s rally continues into August.
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