This article first appeared in The Edge Financial Daily on May 14, 2019

KUALA LUMPUR: The downward pressure on Asian stock markets, including Malaysia’s, is mounting as investors are fleeing from equities amid renewed concerns over escalating trade tensions.

Yesterday, the bears swarmed Asian markets and the FBM KLCI was not spared.

The benchmark index dipped below the 1,600-level but late bargain hunting helped lift it to close at 1,601.09 points, down 9.18 points or 0.57% yesterday — the lowest level since January 2016.

The selling came after the US’ decision to raise tariffs from 10% to 25% on US$200 billion (RM832 billion) worth of Chinese goods. Also, the Sino-US trade talks were unsuccessful.

Over the course of a year, Bloomberg data show the KLCI — down 13.29% — remains one of the laggards among regional indices. Most of them were also in negative territory.

South Korea’s Kospi was down 16.09% in the same period; the Hang Seng Index declined 8.26%; and Japan’s Nikkei 225 slid 6.89%.

Year to date, the KLCI is the worst performing major index regionally, declining 5.39%, followed by the Jakarta Composite Index, down 0.95%. Most of the rest, however, had recovered and are now in positive territory.