KUALA LUMPUR, July 1 (Bernama) -- Bursa Malaysia’s benchmark index fell 0.43 per cent to close at its intraday low, reversing earlier gains as a wave of late-session selling erased the day's advances. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said the index traded in positive territory for much of the day before profit-taking intensified in the final minutes, reflecting investors’ cautious stance amid a lack of fresh market catalysts. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 7.23 points to 1,656.83 from Tuesday's close of 1,664.06. The benchmark index opened 1.29 points higher at 1,665.35 and climbed to an intraday high of 1,670.99 in the mid-morning session, before losing momentum in the final 10 minutes, dragging the index to its session low at the close. Market breadth was positive, with gainers outnumbering decliners 526 to 448, while 559 counters were unchanged, 1,088 untraded, and 14 suspended.
Quick Summary
Asian stocks outperformed the US, avoiding Wall Street’s AI-driven sell-off
China and South Korea rebounded, led by semiconductor names
Gold and silver retreated after recent record highs
Asia-Pacific equities are up 12% YTD, vs a slight decline in the S&P 500
Asia Stays Resilient Despite US Tech Angst
Asian equities largely shrugged off a US market slide triggered by concerns that artificial intelligence could erode profits across multiple industries.
The MSCI Asia-Pacific Index swung between gains and losses, with:
Japan’s Topix +0.2% (after reopening from holiday)
South Korea +1.1%, recovering early losses
Shanghai Composite +0.6%
Hang Seng -1.8%
Key point: Asia has avoided the intense AI-driven rotation hitting US software and tech stocks.
Why Asia Is Outperforming
Asia is seen as a beneficiary of AI supply-chain demand, particularly in semiconductors
Investors are rotating into chipmakers in South Korea and Taiwan
US markets face added pressure from tariff uncertainty under Donald Trump
Year-to-date performance:
MSCI Asia-Pacific: +12%
S&P 500: -0.1%
This marks the strongest start relative to the US on record.
AI Trade: Winners vs Losers
While US software, insurance, and payment stocks have been caught in the “AI scare trade,” Asian chipmakers remain beneficiaries.
Shares of SK Hynix Inc jumped 4.2%, reflecting continued confidence in semiconductor demand.
Analysts say semiconductors, data centres and foundation model labs remain core AI beneficiaries.
Commodities & FX Moves
Gold -1% to ~US$5,174
Silver -2.5%
Bitcoin -0.7% to ~US$64,125
US dollar steady
10-year US Treasury yield: 4.04% (+1bp)
Precious metals retreated after a strong four-day rally of over 7%.
Tariff Uncertainty Still Lingers
Markets remain cautious after:
The US Supreme Court struck down Trump’s “reciprocal” tariffs
The White House proposed a new 15% across-the-board tariff
Additional national security tariff probes are reportedly under consideration
While volatility may be lower than last April’s shock, tariffs remain a persistent overhang.
Bottom Line
Asia’s equity resilience highlights a growing divergence from the US.
As Wall Street wrestles with AI disruption fears and tariff uncertainty, Asian markets — particularly semiconductor-heavy ones — are benefiting from being on the supply side of the AI boom, not the disruption side.
Key Takeaways
Asia outperforming US in 2026
Semiconductors lead gains
AI anxiety concentrated in US software stocks
Gold and silver cooling after surge
Comments
Post a Comment