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...
Key Takeaways
US President Donald Trump arrived in South Korea, the final stop of his Asia tour, with optimism for a trade breakthrough with China.
Talks with Chinese President Xi Jinping are expected to produce a tariff pause and fentanyl export curbs, lifting global market sentiment.
Despite optimism, US–South Korea investment negotiations remain deadlocked, and North Korea’s missile test added geopolitical tension to the backdrop.
Trump’s Asia Tour Reaches Its Climax
President Trump touched down in Busan, South Korea, on Wednesday morning, following stops in Malaysia and Japan.
He will meet South Korean President Lee Jae Myung in Gyeongju before holding crucial trade talks with China’s Xi Jinping on Thursday — a meeting investors are watching closely as a potential turning point in the ongoing US–China trade war.
Trump struck an upbeat tone en route:
💬 “The relationship with China is very good. I think we’re going to have a great outcome for our country and for the world,” he told reporters aboard Air Force One.
The president hinted that the U.S. could reduce tariffs on Chinese goods in exchange for Beijing’s commitment to curb fentanyl precursor exports, an issue that has become a central bargaining chip in negotiations.
Markets responded positively. US equity futures extended gains, while Asian stocks maintained an upward trajectory amid hopes for a tariff truce and a Fed rate cut later this week.
South Korea Trade Talks Hit a Wall
Despite the positive optics, progress with South Korea has been slower than expected.
Trump and Lee are expected to discuss trade, investment, and peace on the Korean Peninsula, but both sides have played down expectations of a breakthrough.
The two countries previously announced a framework in July under which South Korea would invest US$350 billion in the U.S., in exchange for tariff relief on key exports. However, the two sides remain stuck over payment structures and implementation timelines.
Adding to the complexity, Washington continues to pressure Seoul to increase its defence contributions, while South Korea seeks U.S. visa reforms to bring in more workers for its expanding U.S. factory operations — especially following recent investigations into a Hyundai battery plant in Georgia.
Xi–Trump Talks: A Market-Moving Event
Negotiators from Washington and Beijing reportedly finalized a draft framework over the weekend that would:
Pause new U.S. tariffs, and
Ease Chinese export restrictions on rare earth metals.
The potential deal has already fueled record highs on Wall Street, with the Nasdaq and S&P 500 posting three consecutive all-time closes this week.
Trump’s upcoming meeting with Xi could serve as a symbolic détente, especially as both economies seek stability ahead of 2026.
However, Taiwan remains a wildcard. Beijing reiterated that it “absolutely will not rule out using force” over the island, while Trump downplayed the issue, saying he was “not sure” whether Taiwan would even come up in talks.
Asia Policy Highlights from Trump’s Trip
| Country | Key Developments | Market Implication |
|---|---|---|
| Malaysia | Announced new trade deals; witnessed a border peace accord between Thailand & Cambodia. | Strengthens U.S. regional influence. |
| Japan | Signed trade & rare-earth agreements; praised PM Sanae Takaichi’sdefence spending plan. | Reinforces U.S.–Japan tech supply chain. |
| South Korea | Ongoing US$350B investment dispute; mutual focus on security and semiconductor cooperation. | Market cautious on implementation risk. |
Trump will skip the Apec Leaders’ Summit, preferring bilateral sessions instead. Analysts note this reflects his transactional approach to diplomacy.
💬 “While the U.S. steps back from multilateral settings, most countries continue to rely on such institutions for cooperation,” said Christopher Padilla of the Brunswick Group.
Market Context
Global investors are parsing Trump’s Asia tour as a potential turning point for global trade sentiment:
S&P 500 and Nasdaq Composite hit new records this week, led by tech and AI-related sectors.
Asian equities extended gains on optimism that AI-driven growth and easing trade tensions will sustain momentum.
Safe havens such as gold and the yen saw mild gains amid North Korea’s missile test.
Investor Takeaway
Trump’s upbeat rhetoric and Xi’s willingness to negotiate have boosted short-term risk appetite, but underlying geopolitical and policy uncertainties remain.
Positive for markets (short term):
Likelihood of a temporary tariff truce between the U.S. and China.
Renewed AI and semiconductor cooperation across Asia.
Risks to watch:
US–Korea trade impasse could delay tariff relief.
Taiwan tensions could resurface depending on Xi–Trump dialogue.
North Korea’s provocations may weigh on regional sentiment.
The Bottom Line
Trump’s Asia trip — highlighted by his meeting with Xi — has become a market-moving geopolitical event.
A temporary thaw in U.S.–China relations could reinforce the global risk-on rally, particularly for export-oriented Asian equities and AI-linked semiconductors.
Investors should watch for Thursday’s Trump–Xi press statement, which could set the tone for November’s market direction.
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