[MALAYSIA] Global markets found renewed momentum on Wednesday following optimistic remarks from a senior US official suggesting that the ongoing trade tensions between the United States and China are unsustainable and likely to ease.
US Treasury Secretary Scott Bessent’s comments come amid intensifying concerns over the economic fallout from extended tariffs, which have disrupted global supply chains and dampened industrial output in both nations. Analysts believe a softening of trade hostilities could ease pressure on export-driven sectors, particularly in emerging economies like Malaysia, where trade-dependent industries have faced sluggish growth over the past year.
Buoyed by Wall Street’s overnight rally, Malaysia’s benchmark index opened with a sharp gain, rising 11.11 points to 1,497.36. Bessent’s remarks sparked hopes that Washington and Beijing may be edging toward a compromise in their ongoing negotiations.
Further lifting investor sentiment, US President Donald Trump dismissed speculation that he might remove Federal Reserve Chairman Jerome Powell in a bid to prompt an interest rate cut.
Market participants said Trump’s reassurances offered a dose of stability, calming investor nerves rattled by earlier suggestions of potential political meddling in monetary policy. The independence of the US central bank is widely regarded as a key pillar of market stability, and any erosion of that autonomy could trigger significant volatility in global equities.
In a note to clients, TA Securities said Wall Street’s rally may lend some support to the otherwise subdued domestic market, although it urged caution.
“Immediate resistance is seen at 1,527, which marks the 50% Fibonacci retracement of the upswing from the June 2023 low of 1,369 to the August 2024 high of 1,684,” the firm said. “Next resistance levels are at 1,564 (61.8% FR) and 1,610 (76.4% FR), while key support is located at 1,444 (23.6% FR), followed by 1,400 and the 1,369 low.”
Elsewhere in Asia, regional markets echoed a mood of cautious optimism. Japan’s Nikkei and South Korea’s KOSPI posted modest advances, though investor enthusiasm remained tempered by ongoing uncertainty over the timing and scope of a US-China trade resolution. Sectors with high exposure to tariffs, including electronics and automotive, saw some investors staying on the sidelines.
Malacca Securities, in its daily commentary, noted that bargain-hunting could spill over into the Malaysian market, with the technology sector positioned to benefit. The firm also pointed to glove manufacturers as potential undervalued plays, citing prospects for mid-term order recovery and improved competitiveness versus Chinese peers impacted by tariffs.
Malaysia’s neutral stance in the trade standoff may further attract foreign direct investment, especially in manufacturing and technology sectors, the brokerage added. Recent policy moves—such as tax incentives for high-value investments—have enhanced Malaysia’s appeal as a regional production hub amid shifting global supply chains.
The firm also expects a resurgence in banking stocks, driven by stable earnings and appealing dividend yields. Meanwhile, investors could rotate into domestic consumer plays like 99 Speed Mart, or into defensive names as a buffer against lingering macroeconomic uncertainty.
Among notable financial movers, Maybank gained three sen to RM9.98, Hong Leong Bank advanced 38 sen to RM19.92, and CIMB rose six sen to RM6.81.
In the energy sector, PETRONAS Dagangan climbed 28 sen to RM19.40, while PETRONAS Chemicals added 10 sen to RM3.18.
On the actively traded list, Ingenieur remained unchanged at 3.5 sen, MSB ticked up 0.5 sen to 17 sen, and Pertama Digital rose 1.5 sen to 14 sen.
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