Global & Malaysia Market Wrap

Global Markets Turn Cautious Ahead of Key Fed Decision

Asian markets were poised for a weaker open following a subdued session on Wall Street, as investors brace for the US Federal Reserve’s final policy meeting of 2025. Equity futures in Japan, Australia and Hong Kong pointed to early losses after the S&P 500 and Nasdaq slipped modestly on Monday. Rising US Treasury yields — with the 10-year hitting its highest level since September — added to market unease, driven by jitters ahead of the Fed announcement and further volatility after a major earthquake off Japan.

Markets widely expect a 25bps rate cut, with traders assigning roughly an 89% probability, but uncertainty remains over how fast easing will proceed amid what analysts say is the most divided Fed in years. Inflation disagreements and limited fresh data due to the government shutdown have widened policy gaps among officials. Money markets now anticipate two more cuts by end-2026, down from three a week ago.

Bond markets were active ahead of this week’s heavy auctions, while commodities fell across the board. Oil prices slid about 2%, weighed by restored production at Iraq’s West Qurna 2 oilfield and ongoing geopolitical negotiations around the Ukraine war.

Asia: Data Releases, BOJ Complexity, and China’s 2026 Priorities

In Asia, investors are watching business confidence data and a rate decision in Australia, Indonesian consumer sentiment, and Japan’s machine tool orders. The yen weakened after Monday’s magnitude-7.6 earthquake. Japanese bond yields rose following data showing the economy contracted in the September quarter, adding complexity to next week’s BOJ meeting but unlikely altering its gradual tightening path.

China’s top leadership signaled that strengthening domestic demand will be the central economic priority for 2026, with stimulus expected to remain measured.

Wall Street: Mixed Sector Moves, Deal Activity Dominates

The Dow fell 0.45%, the S&P 500 dropped 0.35%, and the Nasdaq dipped 0.14%, with most S&P sectors in the red. Communication services was the worst performer, dragged down by Alphabet and Netflix, while technology was the only sector to rise, supported by Microsoft, Nvidia and Broadcom.

Corporate headlines dominated trading:

• Paramount Skydance’s US$108.4 billion hostile bid for Warner Bros Discovery lifted both companies’ shares, while Netflix fell.

• Carvana surged 12% after being added to the S&P 500, displacing Marvell Technology, which tumbled 7%.

• Confluent soared 29% after IBM announced an US$11 billion acquisition.

• Tesla slipped 3% after negative analyst commentary.

US President Donald Trump said he will sign an executive order to establish a single national AI regulatory framework, seen as a potential boost for tech firms seeking clearer rules.

Malaysia Corporate Highlights

Apex Healthcare – Independent Adviser Backs Takeover

Kenanga Investment Bank recommended that minority shareholders accept the RM2.64-per-share offer from a consortium led by CEO Dr Kee Kirk Chin and Quadria Capital, calling the deal “fair and reasonable.” The consortium aims to take the company private.

Capital A – Key Step Toward PN17 Regularisation

Capital A secured High Court approval for its RM2.74 billion capital reduction, clearing the way to distribute AirAsia X shares to entitled shareholders. It will pursue a further RM5.51 billion capital reduction and then apply to exit PN17 status.

Matrix Concepts – ONEFest Campaign Launched

Matrix Concepts rolled out its ONEFest Celebration homeownership campaign, offering bundled incentives such as fee waivers, free broadband, loyalty rewards and festive-themed promotions across its developments in the south, Negeri Sembilan and Klang Valley.

MISC – Secures Major PETRONAS Contract

MISC won a contract from PETRONAS Carigali Brunei to lease, operate and maintain a floating production unit for a natural gas project. Operations are scheduled to begin in 1H 2029; the 12-year charter includes up to three additional one-year extension options.

Ramssol Group – Appointed JPJ Collection Agent

Ramssol’s subsidiary Rider Gate Sdn Bhd has been appointed by the Transport Ministry as an authorised digital collection agent for JPJ services including ownership transfers, licence renewals and summons payments.

JAG Capital – Raises Stake in MyNews

JAG Capital Holdings, controlled by Minister Johari Abdul Ghani, boosted its stake in MyNews Holdings to 20% after acquiring 48.3 million shares via off-market trades.

Tanco Holdings – CCCC Unit Wins AI Port Contract

Tanco appointed CCCC Dredging Southeast Asia as contractor for the RM3.53 billion EPCC package to build the Sea Port Component of its AI-enabled Smart Container Port (Midport) in Port Dickson. Construction will take 3.5 years.

SMRT Holdings – Buys Stake in Singapore Digital Firm

SMRT is acquiring 37.5% of Novus Technologies for S$7.09 million (RM22.48 million) to expand its digital infrastructure and IIoT solutions portfolio.

Perak Transit – RM1.5 Billion Sukuk Programme

Perak Transit proposed a RM1.5 billion sukuk wakalah programme with perpetual tenure to fund capex, working capital and other shariah-compliant purposes, including sustainability-linked issuances.

LB Aluminium – Strong Profit Growth

LB Aluminium’s 2QFY2026 net profit nearly tripled to RM22.03 million, supported by stronger aluminium and property contributions, despite a slight dip in revenue. No dividend was declared.

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