KUALA LUMPUR, Nov 5 (Bernama) -- Bursa Malaysia closed higher, buoyed by Bank Negara Malaysia’s (BNM) decision to maintain the Overnight Policy Rate (OPR) at 2.75 per cent, alongside positive cues from Wall Street. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 19.30 points, or 1.19 per cent, to 1,635.86 from Wednesday’s close of 1,616.56. The benchmark index opened 6.72 points higher at 1,623.28, and fluctuated between an intraday high of 1,642.44 and a low of 1,622.62 during the trading session. However, market breadth was negative, with losers outnumbering gainers 723 to 497, while 466 counters were unchanged, 1,075 untraded and 10 suspended. Turnover rose to 3.74 billion units valued at RM3.61 billion compared with yesterday’s 2.81 billion units valued at RM2.57 billion.
Simple Summary
World stocks extended losses for a third day, heading for the worst week since November
Tech and AI-linked stocks led the sell-off, with software shares hit hard
Silver and cryptocurrencies plunged, then staged shaky rebounds
Markets are beginning to price in higher odds of a Fed rate cut
What’s Driving the Market Rout
Global markets stayed under pressure as volatility ripped through equities, precious metals and cryptocurrencies.
MSCI All-Country World Index slipped 0.1%, on track for its worst week since mid-November
Asia-Pacific ex-Japan stocks fell 0.8%
S&P 500 e-mini futures: -0.3%
Nasdaq e-mini futures: -0.5%
The selling followed a sharp Wall Street rout, where fears are mounting that new AI models may erode software profit margins, just as US labour-market data weakens.
AI Optimism Meets Reality
Investors are rotating away from crowded AI trades.
“The market is starting to ask: what is the payback?” said Prashant Bhayani of BNP Paribas Wealth Management.
Key pressure points:
US layoffs in January hit a 17-year high
The S&P 500 turned negative for the year
The S&P software & services index plunged 4.6%, wiping out ~US$1 trillion in value since late January
The sell-off has been dubbed “software-mageddon”
Silver and Crypto: Panic, Then Pause
Speculative assets were hit especially hard:
Bitcoin fell below US$60,000, before rebounding to ~US$64,600
Ethereum jumped 3% after a steep slide
Silver plunged as much as 10%, then clawed back to US$71.61
Gold rebounded 0.9% to US$4,815
China’s UBS SDIC Silver Futures Fund was briefly suspended after hitting daily loss limits, highlighting forced unwinds in crowded trades.
Key theme: Aggressive deleveraging, not a slow repositioning.
Asia: Volatile but Selective
South Korea’s Kospi triggered a trading halt after a 5% drop, later trimming losses to 2.3%
Japan’s Nikkei 225 rose 0.3%
China’s Shanghai Composite edged up 0.1%
Indonesia stocks slid, after Moody’s cut its outlook, days after MSCI-related turmoil
Fed Rate-Cut Bets Rise
Market stress is reviving expectations of monetary easing by the Federal Reserve.
Probability of a March rate cut jumped to 22.7%, from 9.4% a day earlier
US 10-year Treasury yield fell to 4.18%
Dollar index steady at 97.92
Japanese yen strengthened, as investors sought safety
Bottom Line
Markets are undergoing a violent reset.
Crowded AI trades are being unwound, speculative assets are flushing out leverage, and investors are reassessing growth, profitability, and liquidity all at once.
The key question now: Is this just a correction — or the start of a deeper regime shift away from AI-driven exuberance?
Key Takeaways
Tech and software stocks are leading the downside
Silver and crypto volatility signals forced deleveraging
Fed cut expectations are rising again
Rotation into defensives is accelerating
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