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...
China’s factory sector extended its decline in October, marking the longest manufacturing slump in nearly a decade as economic headwinds deepen in the year’s final quarter.
Manufacturing Weakens Further
The official manufacturing PMI fell to 49 in October from 49.8 in September — below the 50 mark that separates growth from contraction. This also missed economists’ expectations of 49.6, according to Bloomberg.
The non-manufacturing PMI, covering construction and services, edged up slightly to 50.1, suggesting only marginal improvement outside the factory floor. Analysts attributed part of the weakness to the extended eight-day national holiday, which reduced working days.
“Manufacturing firms’ production and market demand both fell,” said Huo Lihui, a statistician at the National Bureau of Statistics (NBS).
Trade Relief Offers Only Temporary Boost
The decline came just as US President Donald Trump and President Xi Jinping reached a temporary trade truce in South Korea — easing tensions after months of tariff battles.
While tariff relief offers short-term support, analysts warn that the rush to export ahead of tariffs earlier this year may fade, leading to softer overseas demand in the coming months.
Growth Faces Pressure in Final Quarter
China’s GDP growth slowed last quarter to its weakest pace in a year, and economists expect further decelerationthrough the final three months of 2025. The government still targets around 5% growth for the year, but some analysts see the slowest quarterly performance since the 2022 lockdowns.
Adding to the drag, the output sub-index within the PMI turned negative for the first time since April, signalling weaker factory production. Domestic demand remains subdued as households turn more cautious about spending and jobs.
Beijing Eyes Tech & Manufacturing Push
Looking ahead, China plans to double down on technology and manufacturing over the next five years, while raising the share of consumption in its economy.
Officials have pledged “extraordinary measures” to achieve breakthroughs in core tech capabilities and tighten export controls, according to the readout of a key policy meeting in October.
Investor Takeaway
China’s factory sector continues to struggle amid soft domestic demand and global uncertainty.
While the trade truce may offer short-term relief, the underlying slowdown persists, suggesting that investors should stay cautious on sectors tied to manufacturing, exports, and heavy industry — and watch closely for policy support measures in the coming months.
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