MARKET PULSE PM MAY 27, 2025 [WATCH]
KUALA LUMPUR: News on stock, crypto and ringgit moves.
Bursa Malaysia closed lower today, in line with the broadly negative performance across the region.
Key Asian markets ended mostly lower as investors are cautiously awaiting the latest developments on Donald Trump's trade war.
The FBM KLCI is likely to stay in a consolidation phase in the near term, as cautious sentiment prevails amid rising global uncertainties.
Meanwhile, the ringgit weakened against the US dollar to 4.2350.
In the crypto market, Bitcoin rose to RM464,968 as traders looked ahead to key price data.
Ethereum traded higher at RM11,135, while Solana was up at RM743.
That's it for Market Pulse.
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New Straits Times
25 minutes ago
- New Straits Times
China's yuan ticks up as US-China trade truce lifts sentiment
SHANGHA: China's yuan strengthened against the dollar on Thursday, as the latest trade truce between Washington and Beijing raised hopes that the world's two largest economies could avoid any further escalation in their tariff row. However, the gains were capped by a weaker-than-expected midpoint guidance fix, which markets interpreted as an official attempt to keep the yuan stable in the face of broad dollar weakness. Deepening deflationary pressure and slowing exports also dragged on the Chinese currency. US President Donald Trump on Wednesday said he was very happy with a trade deal that restored a fragile truce in the US-China trade war, a day after negotiators from Washington and Beijing agreed on a framework covering tariff rates. "This was a conversation that enabled more conversations and prolong the trade truce," Maybank analysts said in a note. "However, there was little seen in terms of resolving core differences and issues such as national security, tariffs and technology race. There was little to suggest what can turn this trade truce a tad more permanent." As of 0342 GMT, the onshore yuan was 0.13 per cent higher at 7.1800 per dollar, while its offshore counterpart was up 0.24 per cent in Asian trade to 7.1818. Prior to the market opening, the People's Bank of China (PBOC) set the midpoint rate at 7.1803 per dollar, its strongest since April 2. The spot yuan is allowed to trade 2 per cent either side of the fixed midpoint each day. The central bank had set firmer-than-expected midpoint guidance rates on most of the days since November to prevent excess yuan weakness. However, Thursday's official guidance was 100 pips weaker than a Reuters' estimate of 7.1703, with some traders interpreting it as an attempt to prevent any large upswing in the yuan at a time of broader dollar weakness. Overnight, a milder US inflation report for May led traders to ramp up bets of a Federal Reserve rate cut as early as September, keeping pressure on the dollar. Also, a slew of recent Chinese economic data, including inflation and trade, pointed to a slowing economy and may not support a strong yuan in the near term, traders and analysts said. "Economic momentum remains weak, amid persistent deflation, while exports remain the main engine of growth," FX analysts at Barclays said in a note. "We continue to see yuan depreciation as a necessary release valve alongside incremental fiscal and monetary policy easing." Hu Yifan, regional chief investment officer and chief China economist at UBS Global Wealth Management, expects a loose monetary policy stance to be maintained for the remainder of this year. "We think there will be another 50 to 100 basis points of reserve requirement ratio (RRR) cuts in the second half of this year, and interest rates to be reduced by 20 to 30 basis points, due to low inflation," Hu said. "If tariffs are lowered, fiscal policy may not be needed, and China may not want to use up all its firepower."
New Straits Times
25 minutes ago
- New Straits Times
Asian currencies strengthen on signs of easing trade tensions
SINGAPORE/HONG KONG: Emerging Asian currencies strengthened on Thursday as the dollar weakened following a softer US inflation report, while the US-China trade truce and signs that President Donald Trump may adopt a milder stance in tariff talks also supported risk sentiment. The Taiwan dollar advanced 0.8 per cent to its highest level since early-May, and the South Korean won rose 0.9 per cent. The Malaysian ringgit inched up 0.3 per cent, and the Thai baht rose 0.4 per cent to a near three-week high. Investor focus this week remained on trade talks between Washington and Beijing, which concluded with a framework deal that would lift Chinese export curbs on rare earth minerals and restore access for Chinese students to US universities. "Relief from the fact that both the countries have managed to reach an agreement following their talks earlier in the week has been more or less priced in by markets, which has made the US dollar continue to weaken, helping Asian currencies," said Khoon Goh, head of Asia research at ANZ. The dollar index dipped 0.2 per cent as signs emerged that Trump may take a more conciliatory tone in tariff negotiations. Trump said he was open to extending a July 8 deadline to conclude trade talks with countries before imposing higher tariffs. He also said the US would send out letters in one to two weeks outlining the terms of trade deals to dozens of other countries. Meanwhile, data also showed US consumer prices rose less than expected in May, prompting traders to ramp up bets on a Federal Reserve rate cut as early as September, adding pressure on the dollar. Around the world, Iran warned if nuclear negotiations fail and conflict arises with the United States, it will strike American bases in the region. Back in Asia, stocks in South Korea were up 0.9 per cent, while those in Singapore and Malaysia edged up 0.2 per cent and 0.1 per cent, respectively. However, shares in Taiwan fell 0.8 per cent. Insurance company Fubon Financial Holding , which reported a significant loss for May, was among the top drags on the benchmark index. "There are ongoing concerns about the impact of the strong Taiwan dollar on the profitability of Taiwanese life insurance companies," Goh said. Thai stocks slipped 0.4 per cent as political uncertainty deepened with the Supreme Court set to hear a case that could result in jail time for former Prime Minister Thaksin Shinawatra. Markets in Philippines were closed for a holiday.
Malay Mail
2 hours ago
- Malay Mail
Asian rally snaps as Trump threatens ‘take it or leave it' levies
HONG KONG, June 12 — Asian shares were rattled today after Donald Trump said he would impose unilateral tariffs on partners in the next two weeks, reigniting trade war fears soon after reaching a deal with China to dial down tensions between the superpowers. The mood was also shaded by geopolitical concerns after the US president said personnel were being moved from the Middle East as nuclear talks with Iran faltered and fears of a regional conflict grew. The equity losses snapped a recent rally fuelled by talks between Beijing and Washington in London that saw them hammer out a framework agreement to move towards a pact to reduce levies. Investors have been on edge since Trump's 'Liberation Day' tariff blitz on April 2 that sent shockwaves through stock and bond markets and stoked global recession fears. Days later he announced a pause in those measures until July 9 to allow for countries to cut deals with the White House, sparking relief rallies that have pushed some markets towards all-time highs. However, he once again shook confidence by saying yesterday that he intended to send letters telling governments what levies Washington would be imposing. 'We're going to be sending letters out in about a week and a half, two weeks, to countries, telling them what the deal is,' he told reporters. 'At a certain point, we're just going to send letters out. And I think you understand that, saying this is the deal, you can take it or leave it.' While some analysts indicated that previous threats had been rowed back, the comments added to the ongoing uncertainty about Trump's policies, reviving fears about sky-high levies and the impact on the economy. They also came not long after he had flagged the London agreement, and posted on social media that 'President XI and I are going to work closely together to open up China to American Trade', referring to his counterpart Xi Jinping. 'The uncertainty doesn't help,' Nick Twidale at AT Global Markets Australia said. 'And his overall comments overnight have led to more uncertainty for the market rather than the clarity we were hoping for.' Most Asian markets fell today, with Tokyo, Hong Kong, Shanghai, Wellington, Taipei and Jakarta in the red after a broadly healthy run-up this week. There were gains in Sydney, Singapore and Seoul. The weak performance followed losses on Wall Street, where trade worries overshadowed another below-forecast inflation reading that provided fresh speculation the Federal Reserve will cut interest rates. Oil prices slipped but held most of yesterday's surge of between four and five per cent that came after Trump said US personnel were being moved from the potentially 'dangerous' Middle East as Iran nuclear talks stutter. The move came as Tehran threatened to target US military bases in the region if a regional conflict broke out. The US president said the staff were 'being moved out because it could be a dangerous place'. 'We've given notice to move out and we'll see what happens.' With regard to Iran, he then added: 'They can't have a nuclear weapon, very simple. We're not going to allow that.' Trump had until recently expressed optimism about the talks, but said in an interview published yesterday that he was 'less confident'. — AFP
