KUALA LUMPUR, July 29 (Bernama) -- Bursa Malaysia rebounded to close higher on Wednesday on selective buying of defensive stocks after a volatile trading session. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said consumer products and services stocks lifted the key index higher, overcoming lingering geopolitical concerns. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 3.08 points to 1,715.56 from yesterday’s close of 1,712.48. The benchmark index, which opened 1.91 points higher at 1,714.39, moved between 1,710.79 and 1,720.59 during the day’s trading. In the broader market, gainers outstripped decliners 550 to 476, while 612 counters were unchanged, 1,129 untraded, and 48 suspended. Turnover rose to 2.96 billion units valued at RM2.48 billion from 2.94 billion units valued at RM2.56 billion on Tuesday.
An expanded US-China trade war under President-elect Donald Trump could reduce China’s GDP growth by two percentage points, according to Macquarie Group Ltd. Trump’s proposed 60% tariffs on Chinese goods could shrink the nation’s exports by 8%, pushing Beijing to stimulate domestic demand with a projected three trillion yuan (US$420 billion) in stimulus. Economists Larry Hu and Yuxiao Zhang from Macquarie suggest this “Trade War 2.0” might end China’s export-driven growth model, shifting focus back to domestic demand and consumption as key growth drivers. The US economy would feel the effects too : Bloomberg Economics forecasts a maximal tariff scenario would lower US GDP by 0.8% and raise inflation by 4.3% by 2028 if only China retaliates. Broader global retaliation could reduce US GDP by 1.3%, though inflation would increase by just 0.5%. During Trump’s previous term, US tariffs on Chinese exports jumped to 19.3% in 2020. In response, Chinese exporters diversified markets an...