KUALA LUMPUR, May 8 (Bernama) -- Bursa Malaysia snapped a five-day rally to close lower on Friday on profit-taking and in line with weaker global markets as renewed military developments between the United States and Iran hurt risk appetite, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 10.79 points, or 0.61 per cent, to its intraday low of 1,748.06 from Thursday’s close of 1,758.85. The benchmark index, which opened 0.78 of-a-point lower at 1,758.07, moved to its intraday high of 1,760.19 in early trade before succumbing to selling pressure in late trading. Market breadth was negative with losers beating gainers 708 to 451. A total of 586 counters were unchanged, 907 untraded, and nine suspended. Turnover eased to 3.31 billion units worth RM3.00 billion compared with 3.78 billion units worth RM4.24 billion yesterday.
Asian markets showed resilience despite rising geopolitical tensions, with AI-driven momentum continuing to support equities, even as oil prices climbed on renewed Middle East hostilities.
Oil Prices Rise Amid Renewed Conflict
Crude oil extended gains as the US and Iran exchanged fire:
- Brent crude rose 1.3% to US$101.60 per barrel
- Energy markets remain sensitive to developments in the Strait of Hormuz, a key global supply route
Despite the flare-up, both sides signaled limited escalation, keeping hopes alive for a negotiated resolution.
Asian Stocks Slip Slightly but Hold Strong Weekly Gains
The MSCI Asia-Pacific ex-Japan Index dipped 0.8%, reflecting cautious sentiment.
However, weekly performance remains robust:
- Kospi +12% (largest weekly gain since 2008)
- Taiex Index +6.9%
- Nikkei 225 +4.5%
The rally has been fueled by strong demand for AI-related chips, particularly benefiting companies like Samsung and SK Hynix.
AI Boom Continues to Drive Market Leadership
The surge in Asian equities reflects ongoing investor enthusiasm for AI infrastructure and semiconductors.
Markets are increasingly treating Asia — especially Taiwan and South Korea — as core beneficiaries of the global AI capex cycle.
Mixed Signals in Japan and Tech Sector
Japan’s Nikkei 225 slipped 0.4%, weighed by weakness in SoftBank Group after concerns over chip supply at Arm.
This highlights supply chain constraints as a potential risk even amid strong demand.
Currency and Bond Markets Stabilise
- The US dollar stabilised, recovering from recent lows
- The Japanese yen remained volatile amid suspected intervention
- US 10-year Treasury yields held near 4.39%, tracking oil-driven inflation concerns
Meanwhile, China’s yuan strengthened toward 6.8 per dollar, its strongest level since 2023.
Macro Focus: Jobs Data and Political Risks
Investors are watching key upcoming events:
- US non-farm payrolls (expected +62,000 jobs)
- UK local elections, which could impact fiscal and bond market stability
These factors may influence global risk sentiment in the near term.
Investor Takeaways
- Oil prices remain elevated, reflecting ongoing geopolitical risks in the Middle East.
- Asian equities delivered strong weekly gains, driven by the AI semiconductor boom.
- Markets are resilient but cautious, pricing in limited conflict escalation.
- AI remains the dominant investment theme, supporting tech-heavy markets.
- Investors should monitor oil prices, economic data, and geopolitical developments closely.
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