KUALA LUMPUR, Aug 18 (Bernama) -- Bursa Malaysia ended higher on Tuesday, outperforming most regional markets as investors continued to rotate towards commodity and plantation-related stocks, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 7.47 points, or 0.43 per cent, to 1,733.36 compared with Monday’s close of 1,725.89. The benchmark index opened 1.63 points higher at 1,727.52, and fluctuated between 1,723.60 and 1,734.53 throughout the day. On the broader market, losers outpaced gainers 762 to 438, while 576 counters were unchanged, 1,075 untraded and 16 suspended. Turnover expanded to 3.74 billion units valued at RM2.91 billion from 3.45 billion units valued at RM2.74 billion on Monday.
U.S. President Donald Trump has refused to alter the terms of the recently signed South Korea tariff agreement, keeping in place a 15% levy on Korean goods, despite lobbying efforts from newly elected President Lee Jae Myung. The decision underscores Trump’s hardline trade stance, even as both leaders sought to highlight cooperation on security and industry ties.
Key Takeaways
Tariff Status Quo: The July agreement — which capped tariffs at 15% and avoided Trump’s earlier threat of a 25% duty — will remain unchanged. Trump signaled no appetite for renegotiation, saying, “They’re going to make the deal they agreed to make.”
Political Backdrop: The meeting followed Trump’s volatile social media posts questioning South Korea’s stability, citing reports of “raids on churches.” While tensions briefly spiked, Trump appeared to walk back the remarks during the Oval Office sit-down, crediting Lee’s explanations.
Charm Offensive: Lee flattered Trump on markets, Oval Office decor, and his “peace efforts,” even suggesting a “Trump Tower” in North Korea if peace talks advance. The gestures appeared to soften Trump’s stance during discussions.
Strategic & Economic Implications
Trade Tensions Persist: Despite diplomatic pleasantries, the U.S. remains dissatisfied with elements of South Korea’s pledged US$350B U.S. investment plan, a condition of the July deal. Washington is expected to push for greater clarity on the breakdown of capital inflows.
Industrial Ties: Both sides touted a shipbuilding partnership — with Trump pledging U.S. orders from Korea, while Lee acknowledged Trump’s push for Korean firms to establish shipyards in the U.S. employing American workers. Lee’s government also flagged US$150B in new private U.S. investments.
Defense Cooperation: Though not finalized, defense cost-sharing and military cooperation remain on the table, signaling another flashpoint for negotiations ahead.
Investor Lens
South Korean Exporters: The unrelenting 15% tariff keeps margin pressure intact for South Korean manufacturers with large U.S. exposure, particularly in autos, steel, and consumer goods.
U.S. Shipbuilding & Defense: Potential Korean investment into U.S. shipyards could provide an industrial boost, while defense contractors may benefit if Seoul agrees to expanded security commitments.
Market Sentiment: Trump’s unpredictable rhetoric — swinging from threats of political instability to warm Oval Office optics — reinforces policy uncertainty, a persistent risk premium for Korean equities and currency.
Bottom Line: The meeting avoided a breakdown but produced no tariff relief. Investors should expect continued policy volatility in U.S.–Korea trade relations, with pressure on Korean exporters offset partly by promised U.S. investment inflows.
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