KUALA LUMPUR, April 8 (Bernama) -- Bursa Malaysia ended broadly higher, with the benchmark index rising 1.16 per cent to close near the 1,700 mark, supported by positive sentiment following news of a two-week ceasefire between the United States (US) and Iran, which includes Tehran allowing safe passage through the Strait of Hormuz. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) jumped 19.45 points to its intraday high of 1,696.31 from Tuesday’s close of 1,676.86. The benchmark index opened 11.65 points higher at 1,688.51 and touched an intraday low of 1,683.58 in early trade. In the broader market, gainers trounced losers 855 to 410, while 459 counters were unchanged, 941 untraded and 11 suspended. Turnover increased to 3.77 billion units worth RM3.64 billion from Tuesday’s 2.55 billion units worth RM2.58 billion.
Asian equities and currencies staged a sharp rebound as a US-Iran ceasefire boosted risk appetite and eased pressure from elevated oil prices.
Equities Rally Across Emerging Asia
The MSCI Emerging Asia Index jumped 5%, reaching a three-week high, while broader emerging-market equities rose 4% globally.
Regional markets posted strong gains:
- South Korea: +7%
- Taiwan: +4.5%
- Southeast Asia (Singapore, Malaysia, Indonesia, Thailand, Philippines): +1% to 3%
The rally reflects renewed optimism after Donald Trump agreed to a two-week ceasefire with Iran, reducing immediate geopolitical risks.
Oil Drop Eases Pressure on Import-Dependent Economies
Crude prices fell below US$100 per barrel, providing relief to oil-importing Asian economies that had been hit by rising energy costs.
Lower oil prices are expected to:
- Reduce inflationary pressure
- Support consumer spending and growth
- Improve trade balances for energy importers
However, analysts caution that structural risks remain, particularly if disruptions in the Strait of Hormuz persist.
Asian Currencies Strengthen as Dollar Weakens
Currencies across the region rallied alongside equities, supported by a weaker US dollar.
- South Korean won: +2% (strongest since early March)
- Taiwan dollar: strengthened to 31.79
- Thai baht & Malaysian ringgit: +~1%
- Indonesian rupiah: rebounded after recent losses
The move reflects a reversal of earlier trends, where strong oil prices and dollar strength pressured Asian FX.
Policy and Structural Developments in Focus
In India, the central bank held interest rates steady, awaiting clarity on the economic impact of the conflict.
Meanwhile, Vietnam received a boost as FTSE Russell confirmed its upgrade to emerging market status, supporting long-term capital inflows.
Outlook: Relief Rally with Lingering Risks
While markets have rallied strongly, analysts remain cautious:
- The ceasefire is temporary (two weeks)
- Full reopening of the Strait of Hormuz remains uncertain
- Energy supply disruptions may persist despite lower oil prices
The sustainability of the rally will depend on whether geopolitical tensions continue to ease.
Investor Takeaways
- Asian equities surged, with the MSCI Emerging Asia Index up 5%, driven by ceasefire optimism.
- Oil prices falling below US$100 provided relief to energy-importing economies.
- Asian currencies strengthened, supported by a weaker US dollar.
- The rally reflects a short-term risk-on shift, but structural risks remain.
- Market direction will hinge on ceasefire durability and energy supply normalisation.
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