Shares of PETRONAS Chemicals Group Bhd jumped to a four-month peak as analysts say the Middle East crisis is handing the company a rare cost advantage over global peers. CGS International upgraded the stock to “add” (from “reduce”) and lifted its FY2026 earnings forecast to RM143 million , reversing a prior projected loss of RM667 million. Target price: RM4.45 — implying over 20% upside. Key Takeaways PetChem benefits from domestic gas feedstock supply Brent up 17%, naphtha up 26%, LNG up 50% amid Hormuz shutdown Naphtha-based plants globally face production cuts Analysts see earnings turnaround in FY2026 Why PetChem Is a Winner The key advantage: PetChem sources its gas feedstocks domestically , avoiding reliance on Middle Eastern supply. This shields its: Kertih Olefins & Derivatives (O&D) complex Fertilisers & Methanol (F&M) division Unlike naphtha-based producers, PetChem benefits from: Fixed, low long-term ethane pricing Methane c...
Asian equities fell again on Friday, putting markets on track for their worst weekly performance in six years, as the prolonged Middle East conflict continues to rattle investors. Oil prices eased slightly after a sharp surge earlier in the week.
Markets Slide as Conflict Intensifies
MSCI Asia Pacific Index fell 1.1% on Friday, bringing total losses to 7.5% since the war began.
Regional performance:
Japan Topix -0.8%
Australia S&P/ASX 200 -1.3%
Hang Seng +0.1%
Shanghai Composite +0.6%
US futures were little changed after heavy volatility earlier in the week.
Key Point: Asian markets are on track for their steepest weekly drop in six years amid war-driven risk aversion.
Oil Pulls Back — But Weekly Surge Remains
Brent crude dropped 2.3% to US$83.46 on Friday.
West Texas Intermediate fell 2.5% to US$78.96.
Despite the pullback, oil is still heading for its biggest weekly gain since 2022.
The US administration is weighing options to address soaring fuel prices as the conflict threatens supply through the Strait of Hormuz, a key route for global energy flows.
Inflation and Stagflation Risks
Rising oil prices have revived fears of:
Higher inflation
Delayed interest rate cuts
Potential stagflation
Strategists at Morgan Stanley warned that a sustained oil shock could trigger a repeat of the 2021–2023 environment when both stocks and bonds sold off together.
Treasuries held most of this week’s losses, with the 10-year yield near 4.14%.
Key Point: A prolonged oil shock risks breaking the traditional stock-bond diversification relationship.
Geopolitical Tensions Escalate
Iran launched fresh missile and drone strikes across the Gulf, including reported attacks in the UAE, Bahrain, Qatar and Kuwait.
Iran’s foreign minister said there were no ceasefire talks underway, while Donald Trump reportedly signalled involvement in shaping Iran’s future leadership.
Meanwhile, the US issued a general licence allowing certain Russian oil sales to India, potentially easing some global supply pressure.
Corporate Highlights
Oracle Corp. plans major job cuts amid AI data centre expansion costs.
Marvell Technology Inc. surged 10% in extended trading after strong outlook.
Nvidia Corp. edged higher despite regulatory scrutiny.
Broadcom Inc. expects AI chip sales to exceed US$100 billion next year.
Berkshire Hathaway Inc. CEO Greg Abel pledged to use his take-home pay to buy company shares.
What’s Next: US Jobs Report
Attention now shifts to the US payrolls report.
Markets are watching for:
Signs of slowing hiring
Impact on inflation expectations
Implications for Federal Reserve policy
A weaker reading could boost rate-cut hopes, but strong data may reinforce concerns about energy-driven inflation.
Bottom Line
Markets remain caught between two forces:
Escalating geopolitical risk and oil volatility
Resilient economic data and AI-driven earnings strength
Overall theme: Prolonged war uncertainty and oil volatility are driving Asia toward its worst week in years, even as crude prices show signs of short-term cooling.
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