MONEY MASTER

US President Donald Trump and Chinese President Xi Jinping held their first conversation since last month’s tariff truce, covering a wide slate of geopolitical and economic issues — from trade and Taiwan to Russia’s war in Ukraine — while Trump confirmed plans to visit Beijing in April. Trump described the call as “very good,” saying both sides discussed agricultural purchases, including soybeans, and stepped-up cooperation to curb illegal fentanyl shipments. He added that he invited Xi for a state visit to the US next year. But Trump’s public readout avoided the topic that Beijing highlighted most: Taiwan. According to China’s Foreign Ministry, Xi stressed that the island’s “return” is central to the post-World War II order and urged the US to maintain the positive momentum gained after their October meeting in South Korea. Beijing Pushes Taiwan Issue; US Stays Silent Xi’s remarks came as tensions rise between China and Japan, a key US ally, following comments by Japan’s new Prime Min...

The US Justice Department has charged four individuals in an alleged scheme to illegally export Nvidia’s high-end AI chips to China — a case that has intensified calls in Washington for strict, end-to-end tracking of advanced semiconductors. According to prosecutors, two US citizens and two Chinese nationals conspired to bypass export controls by funnelling Nvidia A100, H100 and H200 GPUs through Malaysia and Thailand using fake contracts and falsified paperwork. Authorities say the group successfully shipped 400 A100 GPUs into China between October 2024 and January 2025 before US law enforcement intercepted further attempts involving 10 supercomputers and dozens of top-tier GPUs. Congress Pushes for Chip Security Act The revelations prompted immediate political reaction. John Moolenaar, chair of the US House Select Committee on China, urged Congress to quickly pass the bipartisan  Chip Security Act , legislation he introduced earlier this year. “China recognises the superiority of...

US President  Donald Trump  said he did not discuss authorising exports of  Nvidia Corp’s Blackwell AI chips  to China during his meeting with President  Xi Jinping , cooling investor hopes that the powerful processors might be cleared for sale to the world’s largest semiconductor market. Blackwell Chips Off the Table Speaking aboard Air Force One, Trump said he and Xi discussed  Nvidia’s access to China in general , but confirmed that  Blackwell accelerators were not part of the conversation . “We did discuss chips,” Trump said. “They are going to be talking to Nvidia and others about taking chips. But we’re not talking about the Blackwell.” The clarification followed Trump’s earlier remarks suggesting he might revisit US export restrictions, which briefly fuelled market optimism and helped Nvidia shares rally — pushing its market value to  US$5 trillion  for the first time. Policy Stance: No Change in AI Chip Controls US Trade Representativ...

Asian equities edged closer to record highs on Friday, buoyed by  strong earnings from Amazon and Apple , which reignited risk appetite and sent  US equity futures higher  after a brief pause in the global stock rally. Global Stocks Extend Gains The  MSCI Asia-Pacific Index  rose  0.6%  at the open, led by gains in  Japan’s Nikkei 225 , while  S&P 500 futures climbed 0.6%  and  Nasdaq 100 futures added 1.2%  following overnight weakness in Wall Street. The rebound came as  Apple beat revenue expectations  and issued a  bullish holiday forecast , while  Amazon shares surged 13% in extended trading  after posting its  fastest cloud growth in nearly three years . Market sentiment also improved on  signs of easing US-China trade tensions , even as the  Federal Reserve  signaled that a  December rate cut is not guaranteed . Tech Optimism vs. AI Cost Concerns Mega-cap tech stocks ...

 Malaysia’s benchmark  FTSE Bursa Malaysia KLCI (FBM KLCI)  closed higher on Monday, supported by optimism surrounding the  ASEAN Summit  and improved regional sentiment. The index gained  5.11 points (+0.32%)  to finish at  1,618.38 , with trading volume rising to  3.44 billion units worth RM2.91 billion . Market breadth was balanced, with  543 gainers and 543 losers . Positive sentiment came as investors digested encouraging developments from the ongoing  ASEAN Summit , which reinforced confidence in Malaysia’s leadership role in the region. Top Gainer:  SDG (5285.MY) — RM5.40 (+2.86%) Top Loser:  99SMART (5326.MY) — RM3.11 (–2.81%) USD/MYR:  4.21 (–0.31%) Wall Street Recap Major US indices hit fresh record highs on Monday amid  renewed optimism over US-China trade talks . Presidents  Donald Trump  and  Xi Jinping  are expected to meet during a South Korean economic summit this week, raising...

 After weeks of unrelenting gains,  gold’s historic rally has finally met resistance . The precious metal tumbled  as much as 6.3%  on Tuesday — its  biggest single-day drop in 12 years  — just a day after notching a record high of  US$4,381.52 per ounce . A mix of factors drove the selloff, including  positive developments in U.S.-China trade talks , a  stronger U.S. dollar , and growing technical fatigue after an overbought run. Adding to the uncertainty, the ongoing  U.S. government shutdown  has deprived traders of crucial market data, further amplifying volatility. Cooling Haven Demand The correction comes as optimism grows over a potential  trade breakthrough  between  President Donald Trump  and  President Xi Jinping , who are scheduled to meet next week. The easing geopolitical tension reduced demand for safe-haven assets, while the dollar’s strength made gold more expensive for foreign buyers. “Trad...

Malaysia’s semiconductor sector may face  short-term headwinds  as renewed US-China trade tensions threaten to disrupt global supply chains,  MBSB Research  warned in a note on Thursday. The firm highlighted that  China’s new export restrictions on rare earth elements (REE) and battery technologies , combined with the  US’ 100% tariff on Chinese imports , could delay the production of advanced chips and equipment, impacting global and local manufacturers. “Malaysia, being part of the global semiconductor supply chain, may experience spillover effects,” MBSB said, citing potential disruptions to EV and chip components. Impact on Malaysia REE exports fell  9.6% year-on-year  to  RM4.5 billion  in 9M2025 amid weaker demand from China, Thailand, and Japan. REE-related products make up only  0.4% of Malaysia’s total exports , but account for  6.8% of mining exports . Higher input costs and delivery delays could affect Malaysia’s...

US stocks rebounded sharply on Monday as investors bought into the market’s steepest rally since May, fuelled by renewed optimism over US-China trade talks, easing Middle East tensions, and continued enthusiasm around artificial intelligence. S&P 500 Posts Best Session in Five Months The  S&P 500 surged 1.6% , adding to a bull market that has already lifted valuations by  US$28 trillion (RM118.4 trillion) . Chipmakers led the rally — a sector index climbed nearly  5% , driven by  Broadcom Inc’s 10% jump  after  OpenAI signed a multiyear deal to buy its custom chips and networking equipment. Analysts said the rebound demonstrated that  “buy-the-dip” sentiment remains entrenched , even as valuations stretch. “Investors remain eager for exposure, and if this recovery holds, it reinforces the idea that retail investors can’t be easily shaken,” said  Mark Hackett , Nationwide. Trade and Geopolitical Relief Lift Sentiment Markets gained after si...

Asian stocks traded cautiously on Wednesday as investors weighed the lack of progress in U.S.-China trade talks and awaited the Federal Reserve’s policy announcement. MSCI’s Asia-Pacific index outside Japan rose  0.3% , supported by gains in Taiwan.  Australia’s ASX 200  added  0.7% , while  Japan’s Nikkei  slipped  0.03%  and  Hong Kong’s Hang Seng  fell  0.4% . The euro edged up  0.2%  from a one-month low after the EU’s trade deal with the U.S. Markets Eye Fed and Tariffs The Federal Reserve is expected to leave interest rates unchanged later Wednesday, though some officials are signalling support for future cuts as tariffs add uncertainty. U.S. 10-year Treasury yields fell to  4.328% , the lowest since July 3, while two-year yields held near  3.87% . President Trump’s  August 1 tariff deadline  looms, with U.S.-China talks ending without major breakthroughs. Both sides agreed to seek an extension of...

Goldman Sachs has upgraded its outlook for Chinese stocks, expecting a potential  11% upside  if the US and China reach a trade agreement. The bank raised its  12-month target for the MSCI China Index to 90 from 85 , according to strategists led by Kinger Lau. The move reflects optimism that a deal could remove one of the biggest risks weighing on the market. Why Goldman Is Bullish A US-China trade deal could be a  “market-clearing event” , similar to rallies seen in other countries that struck trade pacts with the US in recent months. Other tailwinds include a  stronger yuan , easing regulatory pressures on private companies, and supportive liquidity conditions. Sector Focus Goldman advised investors to look at  individual stocks  and shifted its preference to: Overweight:  Insurance and materials. Underweight:  Banks and real estate. Market Context Chinese stocks have been on a winning streak, rising for three straight weeks as expectations...

The coming week is packed with market-moving events as Wall Street watches earnings from major tech players, the Federal Reserve's policy meeting, and renewed U.S.-China trade negotiations. Key Earnings to Watch: Meta Platforms (META)  – Expected to post its slowest sales growth in two years. AI-enhanced ad targeting supports revenue, but margins may face pressure from heavy AI investments. Microsoft (MSFT)  – Projected 14% revenue growth driven by cloud and AI. Investors are keen to see if Azure can sustain near 30% growth amid a recent cyberattack. Apple (AAPL)  – Analysts expect Greater China sales to rebound after two years, boosted by promotions. Services revenue is forecast to notch an eighth straight quarter of double-digit growth. Concerns remain over iPhone demand amid tariff headwinds and AI delays. Amazon (AMZN)  – Retail remains resilient under tariff pressure. Cloud revenue is expected to grow over 5% sequentially, with continued investment in AI and aut...

At least US$1 billion worth of banned Nvidia AI chips  have reportedly made their way into China through unauthorized channels in the months following tighter U.S. export restrictions, according to the  Financial Times . The smuggled chips include  high-end B200 processors , which are barred from sale in China under U.S. national security controls. Key Highlights: Banned but available : Despite restrictions,  Nvidia’s B200, H100, and H200 chips  are widely available in  China’s gray market , with multiple distributors from  Guangdong, Zhejiang, and Anhui  provinces involved. Black market surge : The chips reportedly surfaced in  May  and were sold to  data center suppliers serving Chinese AI firms , even as U.S. policy aimed to cut China off from advanced AI hardware. Southeast Asia's role : Countries in  Southeast Asia , including  Thailand , have become key  transit points  for these restricted chips, according...

Asian markets look set for a cautiously upbeat day, as Wall Street holds firm near all-time highs. But behind the optimism, investors are watching closely as  tariff tensions, Fed politics, and megacap earnings  take center stage. U.S. Snapshot: S&P 500 Steady, AI Stocks in Focus S&P 500 : Flat overall, despite  400+ stocks rising . "Magnificent Seven"  (including Apple, Microsoft, Nvidia) paused after a nine-day winning streak. These AI-driven tech giants are expected to deliver  14% earnings growth  in Q2, while the rest of the S&P 500 shows  flat growth , according to Bloomberg Intelligence. “Tech remains the engine,” says Lauren Goodwin of NY Life Investments. “But the AI story is still early in execution.” Asia Market Outlook Hong Kong & Sydney : Set to open higher. Tokyo : Slight dip expected as investors digest  PM Ishiba’s election setback . Eyes are on Japan’s  40-year bond auction , testing demand amid fiscal concern...

What Happened US Commerce Secretary Howard Lutnick announced that  the US and China have signed a trade understanding , sealing terms reached last month in Geneva. The highlight?  China commits to delivering rare earth materials  critical to industries from EVs to defense — a key gesture that could unlock the easing of US “countermeasures.” Why It Matters Rare earths are essential to the production of: EV batteries Wind turbines Smartphones Military-grade electronics The US will  only lift export curbs once rare earths shipments begin . In the meantime,  restrictions on chip software, jet engines, and ethane remain . Lutnick's Reveal: China deal inked two days ago 10 trade deals with major partners are "imminent" July 9 remains the deadline for reinstating up to  50% tariffs Investor Takeaway: Real Deal or Political Optics? While the signing is a  symbolic win  for diplomacy, markets remained cautious: Offshore yuan: flat S&P 500 futures: stea...

Malaysian equities staged a powerful rebound on Thursday , riding the wave of global relief after  US President Donald Trump paused his reciprocal tariffs —except on China. The move  restored RM75 billion in market value on Bursa Malaysia in just one morning. Market Highlights: FBM KLCI jumped 4.5% at open , hitting 1,473.36 before pausing at 1,465.00 (+64.41 pts). All  30 KLCI component stocks  traded higher. CIMB (+9%) ,  Gamuda ,  Petronas Chemicals , and  Nestlé Malaysia  each climbed nearly  8% . FBM ACE Index : +5% Technology Index : +12% Energy Index : +7% Construction Index : +6% Global Boost: Malaysia joined a broader  Asia-wide rally , with: Taiwan Taiex  and  Japan’s Nikkei 225  up ~9% South Korea’s Kospi  surged 6% Market Commentary: Danny Wong (Areca Capital) : “Today’s rebound may be a temporary blip... downside risks remain due to unresolved tariff issues.” Areca manages over  RM5 billion  in ...

Apple (AAPL)  skyrocketed 15.3%  on Wednesday — its  biggest single-day gain since 1998  — following President Trump’s  tariff pause . But despite the market celebration, analysts caution:  Apple’s China risk still looms large . What Sparked the Rally? Trump  paused 25% reciprocal tariffs  for most countries for 90 days, holding a  10% baseline rate . However,  China is excluded  — with  tariffs on Chinese goods raised to 125% , effective immediately. Relief over avoided tariffs — for now — fueled a broader  tech stock surge . Why Apple Still Faces Big Risks: 85%–90% of iPhones are made in China  (Wedbush, CFRA estimates). Shifting production  is complex and costly, even with  some existing operations in India and Vietnam . Higher China tariffs could force Apple to  raise prices or take margin hits . “China remains the biggest X variable related to Apple and the broader supply chain,”  said Daniel ...