KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
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...