FBM KLCI extends gains on Wall Street boost, healthcare stocks lead
KUALA LUMPUR: Bursa Malaysia extended its gains for the fourth consecutive session, buoyed by a positive carry-over from Wall Street's strong close last Friday, despite mixed performance across regional markets.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) climbed 12.39 points or 0.82 per cent to 1,521.59 from Friday's close of 1,509.20.
The benchmark index had opened 2.63 point better at 1,511.83.
Market breadth was positive, with 519 gainers outnumbering 420 decliners while 436 counters were unchanged, 1,034 untraded and 60 suspended.
Turnover stood at 2.6 billion worth RM1.74 billion.
Malacca Securities Sdn Bhd noted that growing expectations of a potential de-escalation in the trade war, fuelled by US President Donald Trump's less confrontational stance toward China, have boosted overall sentiment on the local front.
The firm said this comes after the market reclaimed the 1,500 psychological level last Friday.
"The rebound extended today, continuing to lift the local bourse by nearly 3.0 per cent from its low on April 22.
"Glove stocks led the gains in the healthcare sector as Malaysia's recent ban on the export of non-locally made rubber gloves is expected to benefit local glove manufacturers, while plantation stocks traded marginally lower," the firm added.
The Bursa Malaysia Healthcare Index surged by 23.70 points or 1.27 percent, driven by gains in Hartalega Holdings Bhd.
The stock rose by six sen or 2.79 per cent to close at RM2.21, bringing the company's market value to RM7.58 billion.
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Malay Mail
an hour ago
- Malay Mail
US-China talks go into overtime in London with rare earths deal on the line; Trump upbeat
LONDON, June 10 ¬— US-China trade talks were set to extend to a second day in London as top economic officials from the world's two largest economies sought to defuse a bitter dispute that has widened from tariffs to restrictions over rare earths, threatening a global supply chain shock and slower economic growth. Talks at Lancaster House, an ornate UK government mansion, wrapped for the night on Monday and were set to resume at 10am BST (0900 GMT) on Tuesday, a US source familiar with the negotiations said. Washington and Beijing are trying to revive a temporary truce struck in Geneva that had briefly lowered trade tensions and calmed markets. Since then, the US has accused China of slow-walking its commitments, particularly around rare earths shipments. US President Donald Trump on Monday put a positive spin on the talks, saying that they were going well and he was 'only getting good reports' from his team in London. 'We're doing well with China. China's not easy,' Trump said, offering no details on the substance of the discussions. Asked about lifting export controls, Trump told reporters at the White House: 'We're going to see.' White House economic adviser Kevin Hassett had said earlier on Monday that the US team wanted a handshake from China on rare earths after Trump said Chinese President Xi Jinping agreed to resume shipments in a rare call between the two leaders last week. Hassett told CNBC in an interview that the US would expect export controls to be eased and rare earths released in volume immediately afterwards. The London talks come at a crucial time for both economies, which are showing signs of strain from Trump's cascade of tariff orders since his return to the White House in January. Customs data showed that China's exports to the US plunged 34.5 per cent year-on-year in May in value terms, the sharpest drop since February 2020, when the outbreak of the Covid-19 pandemic upended global trade. In the US, business and household confidence has taken a pummelling, while first-quarter gross domestic product contracted due to a record surge in imports as Americans front-loaded purchases to beat anticipated price increases. So far, the impact on inflation has been muted and the jobs market has remained fairly resilient, though economists expect cracks to become more apparent over the summer. Attending the talks in London are US Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer. The Chinese contingent led by Vice Premier He Lifeng includes Commerce Minister Wang Wentao and the ministry's chief trade negotiator, Li Chenggang. The inclusion of Lutnick, whose agency oversees export controls for the US, is one indication of how central rare earths have become. Some analysts saw it as a sign that Trump is willing to put recently imposed Commerce Department export restrictions on the table. China holds a near-monopoly on rare earth magnets, a crucial component in electric vehicle motors. Lutnick did not attend the Geneva talks at which the countries struck a 90-day deal to roll back some of the triple-digit tariffs they had placed on each other. Meanwhile, the US court fight over an effort to invalidate Trump's tariffs on goods from China and other trading partners advanced on Monday with the Trump administration filing arguments in its appeal of a US trade court's ruling that the levies exceeded Trump's legal authority. The federal appeals court could rule at any time on the Trump administration's request to keep the tariffs in place while the appeal proceeds. It could go all the way to the Supreme Court. Positive conclusion Trump and Xi spoke by phone last week, their first direct interaction since Trump's January 20 inauguration. During the call, Xi told Trump to back down from trade measures that roiled the global economy and warned him against threatening steps on Taiwan, according to a Chinese government summary. But Trump said on social media the talks focused primarily on trade led to 'a very positive conclusion,' setting the stage for Monday's meeting in the British capital. The next day, Trump said Xi had agreed to resume shipments to the US of rare earths minerals and magnets. Reuters reported that China granted temporary export licenses to rare-earth suppliers of the top three US automakers. Export restrictions China's decision in April to suspend exports of a wide range of critical minerals and magnets upended the global supply chains central to automakers, aerospace manufacturers, semiconductor companies and military contractors. Kelly Ann Shaw, a former White House trade adviser during Trump's first term and now a trade partner at the Akin Gump law firm in Washington, said she expected China to reaffirm its commitment to lift retaliatory measures, including export restrictions, 'plus some concessions on the US side, with respect to export controls measures over the past week or two.' But Shaw said she expected the US to only agree to lift some new export curbs, not longstanding ones such as for advanced artificial intelligence chips. In May, the US ordered a halt to shipments of semiconductor design software and chemicals and aviation equipment, revoking export licenses that had been previously issued. The preliminary deal in Geneva sparked a global relief rally in stock markets, and US indexes that had been in or near bear market levels have recouped the lion's share of their losses. But Ian Bremmer, president of the Eurasia Group, said while a temporary truce was possible, there was little prospect for the bilateral relationship to become constructive given broader decoupling trends and continued US pressure on other countries to take China out of their supply chains. 'Everyone around Trump is still hawkish and so a breakthrough US-China trade deal is unlikely, especially in the context of other deals that are further along and prioritized,' he said in an analyst note. — Reuters
Malay Mail
an hour ago
- Malay Mail
Trump's tariffs made fast fashion faster — and dirtier
WASHINGTON, June 10 — When US President Donald Trump introduced sweeping new tariffs on Chinese imports the goal was to bring manufacturing back to American soil and protect local jobs. However, this process of re-shoring is complex and requires years of investment and planning — far too slow for the world of ultra-fast fashion, where brands are used to reacting in weeks, not years. Many clothing companies started to move production out of China during Trump's first term. They relocated to countries such as Vietnam and Cambodia when the initial China-specific tariffs hit. This trend accelerated with the newer 'reciprocal' tariffs. Instead of re-shoring production, many fashion brands are simply sourcing from whichever country offers the lowest total cost after tariffs. The result? The ultra-fast fashion machine adapted quickly and became even more exploitative. From Guangzhou to your wardrobe in days Platforms such as Shein and Temu built their success by offering trend-driven clothing at shockingly low prices. A US$5 (RM21) dress or US$3 top might seem like a bargain, but those prices hide a lot. Much of Shein's production takes place in the so-called 'Shein village' in Guangzhou, China, where workers often sew for 12–14 hours a day under poor conditions to keep pace with the demand for new items. When the US cracked down on Chinese imports, the intention was to make American-made goods more competitive. This included raising the tariff on Chinese goods as high as 145 per cent (since paused), and closing the 'de minimis' loophole, which had allowed imports under USUS$800 to enter tariff-free. But these tariffs did not halt ultra-fast fashion. They just rerouted production to countries with lower tariffs and even lower labour costs. The Philippines, with a comparatively low tariff rate of 17 per cent, emerged as a surprising alternative. However, the country can't provide the industrial scale and infrastructure to match what China can offer. So why does Australia matter? Much of the cheap fashion previously bound for the US is now flooding other markets, including Australia. Australia still allows most low-value imports to enter tax-free, and platforms such as Shein and Temu have taken full advantage. Australian consumers are among the most frequent Shein and Temu buyers per capita globally. Just 3 per cent of clothing is made in Australia and most labels rely on offshore manufacturing. This makes Australia an ideal target market for ultra-fast fashion imports. We have high purchasing power, lenient import rules and strong demand for low-cost style, especially due to the cost-of-living crisis. The hidden costs of cheap clothes The environmental impact of fast fashion is well known. However, amid the chaos of Trump's tariff announcements, far less attention has been paid to how these policies — together with the retreat from climate commitments — worsen environmental harms, including those linked to fast fashion. The irony is that the tariffs meant to protect American workers have, in some cases, worsened conditions for workers elsewhere. Meanwhile, consumers in Australia now benefit from faster delivery of even cheaper goods as Temu, Shein and others have improved their shipping capabilities to Australia. Australian consumers send more than 200,000 tonnes of clothing to landfill each year. But the deeper problem is structural. The entire business model is built on exploitation and environmental damage. Factory workers bear the brunt of cost-cutting. In the race to stay competitive, many manufacturers reduce wages and overlook hazardous working conditions. Will ethical fashion ever compete? Fixing these problems will require a global rethink of how fashion operates. Governments have a role in regulating disclosures about supply chains and enforcing labour standards. Brands need to take responsibility for the conditions in their factories, whether directly owned or outsourced. Transparency is essential. Alternatives to fast fashion are gaining traction. Clothing rentals are emerging as a promising business model that help build a more circular fashion economy. Charity-run op shops have long been a sustainable source of second-hand clothing. Australia's new Seamless scheme seeks to make fashion brands responsible for the full life of the clothes they sell. The aim is to help people buy, wear and recycle clothes in a more sustainable way. Consumers also matter. If we continue to expect clothes to cost less than a cup of coffee, change will be slow. Recognising that a US$5 T-shirt has hidden costs, borne by people on the factory floor and the environment, is a first step. Some ethical brands are already showing a better way and offer clothes made under fairer conditions and with sustainable materials. These clothes are not as cheap or fast, but they represent a more conscious alternative especially for consumers concerned about synthetic fibres, toxic chemicals and environmental harm. Trump reshuffled the deck, but did not change the game Trump's trade rules aim to re-balance global trade in favour of American industry, yet have cost companies more than USUS$34 billion in lost sales and higher costs. This cost will eventually fall on US consumers. In ultra-fast fashion, it mostly exposed how fragile and exploitative the system already was. Today, brands such as Shein and Temu are thriving in Australia. But unless we address the systemic inequalities in fashion production and rethink the incentives that drive this market, the true cost of cheap clothing will continue to be paid by those least able to afford it. — Reuters
Free Malaysia Today
an hour ago
- Free Malaysia Today
Stocks climb, dollar dips with US-China trade talks eyed
The S&P and Nasdaq rose, but Dow Jones gains were capped by a McDonald's dip after a Morgan Stanley downgrade. (AP pic) NEW YORK : Global stocks climbed on Monday while the dollar retreated as talks began in London between the US and China, aimed at cooling a trade dispute between the world's two largest economies. The dispute has expanded beyond tit-for-tat tariffs to restrictions over rare earths, threatening to cripple supply chains and slow global growth. US President Donald Trump said his administration was doing well and that he was getting good reports as US officials hold the talks with China in London. 'The market deems any dialogue with Beijing as progress, whether or not it leads to tangible results. The market is just going to take the administration's word for it, until proven otherwise,' said Jake Dollarhide, CEO of Longbow Asset Management in Tulsa, Oklahoma. On Wall Street, the S&P and Nasdaq closed higher, with the Dow ending flat as declines in Travelers and McDonald's, the latter of which was downgraded by Morgan Stanley to an 'equal-weight' rating, curbed gains. The Dow Jones Industrial Average fell 1.11 points, or flat, to 42,761.76, the S&P 500 rose 5.52 points, or 0.09%, to 6,005.88 and the Nasdaq Composite rose 61.28 points, or 0.31%, to 19,591.24. Small-cap stocks outperformed, with the S&P 600 index up 0.9%. MSCI's gauge of stocks across the globe advanced 1.94 points, or 0.22%, to 893.90 and was on track for its second straight session of gains. It has risen in five of the last six sessions. In Europe, the pan-European STOXX 600 index closed down 0.07% to snap a four-session winning streak, its longest run of consecutive gains in three weeks. The US dollar slipped against most major currencies, as optimism over a better-than-expected US employment report on Friday was offset by caution ahead of the trade talks. US treasury secretary Scott Bessent, commerce secretary Howard Lutnick and trade representative Jamieson Greer are representing Washington in the talks in London, Trump said in a social media post. China's foreign ministry said vice premier He Lifeng was in Britain for the first meeting of the China-US economic and trade consultation mechanism. US economic data showed wholesale inventories increased in April amid stockpiling of prescription medication in anticipation of tariffs from the Trump administration. Investors are also awaiting US inflation data on Wednesday that may adjust expectations for the timing of any rate cuts by the Federal Reserve. Analysts at Morgan Stanley said they see May as the starting point for a string of increasingly strong core inflation prints, with the push from tariffs peaking in the third quarter and beginning to fade in the fourth quarter. The market does not see the Fed likely to cut before its September meeting, currently pricing in a 62% chance for a cut of at least 25 basis points, according to LSEG data. Fed officials are in a blackout period ahead of the June 18 policy decision. The dollar index, which measures the greenback against a basket of currencies, lost 0.14% to 98.97, with the euro up 0.25% at US$1.1423. Longer-dated US Treasury yields were lower at the start of the week, reversing after Friday's jobs report pushed yields higher. The yield on benchmark US 10-year notes declined 2.8 basis points to 4.482%. Investors will monitor auctions of three-, 10- and 30-year US notes and bonds this week for signs of investor demand. US crude settled up 1.1% to US$65.29 a barrel and Brent settled at US$67.04 per barrel, up 0.86% on the day on hopes a trade deal could spur the global economic outlook along with a softer dollar.
