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...
Asian equities surged to a fresh all-time high, outperforming global peers as investors rotated toward cheaper valuations and stronger regional growth prospects, even as precious metals cooled after a historic rally.
What’s Driving the Rally
MSCI Asia-Pacific Index jumped 1.2% to a record high
Asian stocks have outperformed the S&P 500 so far this year
Investors are broadening exposure beyond the US, amid rising political and policy uncertainty in Washington
Valuations remain the key attraction:
Asia-Pacific trades at ~15x earnings
vs ~22x for the S&P 500 and ~25x for the Nasdaq 100
This valuation gap is drawing global capital toward Asian and non-US assets.
Japan in Focus
Early momentum was led by Japan, where markets reopened after a holiday:
Topix surged 2.2%
Japanese government bond yields jumped
Speculation that Prime Minister Sanae Takaichi may dissolve parliament as early as next month
The yen fluctuated, after Finance Minister Satsuki Katayama flagged concerns over one-way currency moves to the US Treasury.
Precious Metals Pause
Silver fell 1.2%, retreating from record highs
Spot gold edged lower, after a sharp rally
The pullback came despite lingering geopolitical risks, suggesting profit-taking rather than a change in trend.
Why Asia Looks Attractive Now
Market strategists point to a growing shift away from US-centric positioning:
“Non-US assets such as European and Asian equities are likely to look more favourable, especially due to cheaper valuations and as US foreign policy becomes more unpredictable,”— David Chao, Global Market Strategist, Invesco Asset Management
Concerns over US Federal Reserve independence, following renewed pressure from the Trump administration, are also adding to investor unease toward US assets.
Key Risks Ahead
Despite strong momentum, Asian markets face near-term event risks:
US inflation data, with core CPI expected at 2.7% YoY
A potential US Supreme Court ruling on Trump-era tariffs
Escalating political friction between the Trump administration and the Fed
Bond managers warn that political attacks on the Fed could push yields higher, rather than lower, adding volatility across markets.
Earnings Outlook Still Supportive
S&P 500 Q4 earnings growth: 8.4%
2026 earnings growth: 14.6%
Excluding the “Magnificent Seven”, earnings growth remains positive but more modest
This backdrop suggests equities still have fundamental support, even as leadership broadens beyond US megacaps.
Market Snapshot (Asia Morning)
Japan Topix: +2.2%
Hang Seng: +1.7%
ASX 200: +0.9%
Shanghai Composite: Flat
Bitcoin: +0.1%
WTI crude: +0.4%
Bottom Line
Asian equities are breaking out on valuation appeal, not speculation. With earnings optimism intact and US political risks rising, investors are increasingly looking to Asia as a relative safe haven for growth at a reasonable price.
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