Malaysia Morning Wrap | US Stock Futures Rebound After Rare Earth Dispute Selloff; Trump Open to China Trade Talks
Good morning mooers! Here are things you need to know about today's market:
U.S. Markets Plunge on Escalating U.S.-China Trade Tensions Over Rare Earths
Bursa Malaysia Dips Despite Budget 2026 Unveiling, Echoing Regional Market Caution
Maybank CEO: Budget 2026 Strikes Balance Between Growth and Fiscal Prudence
RM350 Million Budget Boost Expands Nadi's Rural E-commerce and Healthcare Services
Stocks to watch: Ge-Shen, Kelington, etc.
- Moomoo News MY
Wall Street Summary
$S&P 500 Index (.SPX.US)$ 6,552.51（-2.71%)
$Dow Jones Industrial Average (.DJI.US)$ 45,479.60 (-1.90%)
$Nasdaq Composite Index (.IXIC.US)$ 22,204.43 (-3.56%)
Major U.S. stock indexes experienced a sharp downturn on Friday, with the Nasdaq Composite, S&P 500, and Dow Jones Industrial Average all declining by approximately 2% or more. The sell-off was triggered by renewed trade tensions between the United States and China, centered around rare earth materials and export controls.
The market reversal came after China announced new export restrictions on rare earth metals and certain lithium batteries, prompting a critical response from U.S. President Donald Trump on social media. Trump subsequently declared plans to impose 100% tariffs on Chinese goods and implement export controls on critical U.S. software. This escalation in trade disputes led to increased market volatility, with the VIX index surging over 30%, while safe-haven assets like gold and silver saw significant gains.
However, US stock futures rebounded on Sunday after Trump sought to reassure investors, expressing openness to talks. Vice President J.D. Vance signaled that negotiations remain possible, and Trump later suggested a deal could be reached before the Nov. 1 deadline.
Bursa Market Insight
Bursa Malaysia closed lower on Friday, with the FBM KLCI falling 0.46% to 1,622.25 points, reflecting a cautious market sentiment amid regional weakness. The broader market saw more decliners than gainers, while trading volume decreased to 3.23 billion units worth RM2.84 billion.
This downturn occurred despite the tabling of Budget 2026 by Prime Minister Anwar Ibrahim, which increased public spending to RM470 billion. Analysts noted that investors were adopting a wait-and-see approach, balancing regional market concerns against positive local developments.
Maybank's CEO Khairussaleh Ramli endorses Malaysia's Budget 2026 for its balanced approach to economic growth, social welfare, and fiscal discipline. The budget addresses cost of living issues, invests in new economic sectors, and supports SME development.
Khairussaleh highlights the focus on cross-border initiatives and sustainability, pledging Maybank's support through financing and sustainable banking solutions to align with the government's economic vision.
Budget 2026 allocates RM350 million to expand the National Information Dissemination Centre's (Nadi) role in Malaysia. Deputy Communications Minister Teo Nie Ching outlines two key initiatives: training rural entrepreneurs in e-commerce through partnerships with platforms like Shopee and Lazada, and launching a drone-based medicine delivery pilot in Sarawak and Sabah.
This funding aims to enhance digital skills and healthcare access across 1,089 Nadi centers nationwide, bridging the urban-rural divide.
IPO Scanner
Stocks to Watch
$GESHEN (7197.MY)$ is set to acquire an additional 40% stake in Local Assembly, boosting its ownership to 80%. To finance this acquisition, the company plans to raise up to RM103.76 million through two separate private placements.
$KGB (0151.MY)$ has entered into a partnership with Worldwide Energy Development and SKS Coachbuilders. The collaboration aims to establish a two-megawatt green hydrogen production facility in Selangor.
$MSB (0350.MY)$ has secured an exclusive 10-year distributorship agreement with Zhejiang GOLD Intelligent Suspension Corp. This deal makes MSB Global the sole distributor of Zhejiang GOLD's shock absorber products in Malaysia, Thailand, and Singapore.
$MAGMA (7243.MY)$ and KLCC Holdings have agreed to sell the Impiana KLCC hotel to Harum Aspirasi for RM315 million. The 519-room hotel will be acquired by Harum Aspirasi, a company primarily owned by the Valiram family, known for their luxury retail business.
$UOADEV (5200.MY)$'s property investment subsidiary, Distinctive Acres, has been issued a notice for an additional tax assessment and penalty totaling RM165.66 million.
Buy or Sell?
Source: Dow Jones Newswires, Bursa Malaysia, The Malaysian Reserve, The Star, The Edge.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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Chiahs38 : drama will not easing until talk concluded