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...
Key Takeaways
Asian stocks opened cautiously amid US–Europe tariff tensions
Gold and silver hit record highs as investors seek safety
EU considering retaliation on €93bn of US goods
S&P 500 futures fell despite US market holiday
Japanese bond yields surged after early election call
Geopolitical risks in Europe and Asia are rising
Asian equities faced a wary start as investors reacted to escalating trade tensions between the US and Europe, reignited by tariff threats from Donald Trump linked to Greenland.
Futures pointed to a mixed open across the region, with Australia and Japan edging lower, while Hong Kong futures advanced. Risk sentiment weakened further after Europe’s STOXX 50 suffered its steepest drop in two months, driving investors into safe-haven assets.
Gold and silver surged to fresh record highs, while the US dollar slipped, with the Swiss franc outperforming. Although US markets were closed for a public holiday, S&P 500 futures dropped 0.9%, signalling a fragile risk backdrop.
The renewed volatility mirrors early jitters from Trump’s second term, as European leaders weigh retaliation. The European Union is considering tariffs on €93 billion worth of US goods, while France has floated using the bloc’s anti-coercion instrument. Germany, however, struck a more cautious tone, citing its heavy reliance on exports.
Market nerves are being tested despite resilient corporate earnings and ongoing AI investment, which have so far underpinned risk appetite. Analysts warn that a prolonged trade standoff could weigh on growth and inflation expectations, reinforcing the appeal of precious metals over dollar assets.
In rates markets, US 10-year Treasury futures slipped, hinting at slightly higher yields, while German short-term yields fell on expectations that a sustained trade shock could open the door to rate cuts. In contrast, longer-dated yields rose amid concerns over higher government borrowing to support growth.
In Asia, attention has turned to Japan after Prime Minister Sanae Takaichi called an early election. Japanese bond yields jumped sharply, with 30-year yields hitting a record high, as investors reassessed fiscal risks.
Geopolitical tensions added another layer of uncertainty after China sent a military drone into Taiwanese airspace for the first time, highlighting rising regional security risks.
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