KUALA LUMPUR, Jan 23 (Bernama) -- Bursa Malaysia’s benchmark index recouped earlier losses to settle higher, maintaining a more than six-year high, buoyed by continued buying interest in technology stocks, while the strengthening of the ringgit against the US dollar further lifted investor sentiment. At 2.27 pm today, the local currency strengthened to 3.9992 versus the greenback, its strongest level in more than seven years. It was last seen at this level on June 18, 2018, at 3.9960/9990. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 2.85 points or 0.17 per cent to 1,719.99 from yesterday’s close of 1,717.14. The index surpassed its previous peak of 1,719.00 recorded on Feb 26, 2019. The barometer index opened 1.30 points lower at 1,715.84 and moved between an intraday low of 1,711.89 in early trade and a high of 1,723.41 in late afternoon before slipping slightly toward the close. However, market breadth was negative with decl...
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Asian markets opened weaker on Tuesday as renewed trade-war concerns weighed on risk sentiment, following President Donald Trump’s threat to impose additional tariffs tied to his push to take control of Greenland.
The latest escalation has unsettled investors, prompting a rotation out of US assets and into safe havens such as gold and the Swiss franc, while US Treasury yields climbed to their highest levels in over four months.
Market Moves at a Glance
Nasdaq & S&P 500 futures: down around 1%
10Y US Treasury yield: 4.265%, highest since early September
Dollar: remained under pressure during Asian hours
MSCI Asia-Pacific ex-Japan: -0.44%
European futures: -0.12%, pointing to a subdued open
The moves signal a tentative revival of the so-called “Sell America” trade, where investors reduce exposure to US equities, the dollar and Treasuries amid policy uncertainty.
Asia Focus
Japan: Nikkei -0.8%
JPY: weakened to around 157.92 per USD
Markets are watching Japan closely ahead of next month’s election, with concerns that proposed tax cuts and higher defence spending could further strain public finances.
Short- and long-term JGB yields surged to record highs, reflecting fiscal sustainability worries.
Europe in the Crosshairs
Trump’s remarks have triggered pushback from Europe and raised doubts over the durability of existing trade agreements. Analysts warn that even if tensions ease, tariff uncertainty is likely to stay elevated, weighing on confidence.
Citi downgraded European equities, citing weaker near-term earnings visibility and rising trade risks.
European policymakers are expected to prioritise dialogue, but credibility concerns around future deals remain.
Commodities & Safe Havens
Gold: steady near US$4,670/oz, just below record highs
Continued demand reflects hedging against geopolitical and policy-driven uncertainty.
What Markets Are Watching Next
Attention now turns to Davos, where Trump is expected to meet global business leaders this week. His presence looms large over discussions, with investors looking for any signal of de-escalation or policy clarity.
Investor Read
Risk sentiment has softened, but panic selling is absent
US yields and the dollar remain key indicators of confidence
Trade uncertainty, rather than hard data, is driving near-term moves
Markets remain cautious, with positioning likely to stay light until there is clearer direction from US–Europe discussions.
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