KUALA LUMPUR, Dec 16 (Bernama) -- Bursa Malaysia extended its positive performance, closing higher for a fourth consecutive session, supported by improving local market sentiment underpinned by a firm domestic macroeconomic backdrop. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.59 points, or 0.28 per cent, to 1,648.31, from Monday’s close of 1,643.72. The index had opened 0.95 of a point lower at 1,642.77, and moved between 1,636.50 and 1,648.71 throughout the trading session However, on the broader market, decliners beat gainers 699 versus 408. A further 520 counters were unchanged, 1,149 untraded and 12 suspended. Turnover rose to 2.59 billion units worth RM2.27 billion from 2.50 billion units worth RM2.16 billion on Monday.
Key Takeaway
The US has officially cut tariffs on Japanese cars and auto parts from 25% to 15% under a new trade deal with Japan. In return, Tokyo will lower tariffs on US goods and commit US$550 billion to US infrastructure projects.
What Happened
President Trump signed an executive order Thursday, finalizing last month’s trade pact.
The new auto tariff rates are retroactive to Aug. 7.
This marks a significant shift in US-Japan trade relations, aiming to reduce tension and strengthen economic ties.
Market Impact
Japanese automakers rallied:
Toyota (TM): +2.40%
Honda (HMC): +1.91%
US carmakers also gained modestly:
Ford (F): +0.52%
EV stocks like Lucid (LCID) slipped, reflecting competitive concerns.
Investor Angle
Lower tariffs should:
Boost competitiveness of Japanese automakers in the US.
Open opportunities for US exporters gaining improved access to Japan.
Channel massive Japanese capital into US infrastructure — potentially lifting related construction and industrial plays.
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