KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
Investor Takeaway: Li Chenggang’s Washington visit is a signal of continued dialogue but not yet a breakthrough. Markets will likely stay in headline-driven volatility mode, with U.S. tariff policy as the main swing factor. Until clarity emerges, positioning around retail, logistics, and export-sensitive equities should remain cautious.
Senior Chinese trade negotiator Li Chenggang, Beijing’s international trade representative and a key aide to economy tsar He Lifeng, will travel to Washington this week for meetings with deputy-level U.S. officials. While not a formal negotiating round, the visit comes at a sensitive juncture, as global markets weigh whether the 90-day tariff trucebetween the two largest economies will hold.
Current Tariff Landscape
On Aug 11, Washington and Beijing agreed to extend their truce, maintaining 30% tariffs on Chinese imports and 10% duties on U.S. goods.
Economists warn that if Trump lifts U.S. tariffs above 35%, they will become prohibitively high, forcing Chinese exporters into further distress.
U.S. retailers are already front-loading inventory ahead of year-end holiday demand, while Chinese exporters describe being in “survival mode”, diversifying supply chains to avoid overdependence on the U.S. market.
Geopolitical and Market Context
This is the fourth round of dialogue since May, following earlier meetings in Geneva, London, and Stockholm.
The last high-level Chinese visit to the U.S. was He Lifeng in Nov 2023, meeting Janet Yellen before the APEC summit. Prior to that, Liu He’s 2020 Washington visit culminated in the Phase 1 trade deal.
Investors remain cautious: Trump’s unpredictable tariff stance and recent threats to impose sweeping duties on semiconductors and furniture have left global supply chains exposed.
Market Implications
Equities: U.S. retailers with heavy China exposure (e.g., furniture importers, electronics brands) could face renewed margin compression if tariffs escalate. Meanwhile, Chinese exporters are racing to secure ASEAN and Global South markets as alternative demand bases.
Currencies: The yuan may face depreciation pressure if trade talks fail, though Beijing’s management of capital outflows remains a stabilizer. The dollar remains sensitive to trade-related risk sentiment.
Commodities & Supply Chains: Prolonged uncertainty is likely to disrupt shipping flows and bulk commodity demand, especially ahead of peak U.S. consumer spending season.
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