KUALA LUMPUR (April 8): Malaysian stocks slipped on Tuesday after a weak early recovery, as investors watched with trepidation trade tensions between the US and its trading partners.

The FBM KLCI rose as much as 10.78 points or 0.7% to 1,454.58. The 30-stock benchmark index, however, began losing steam and paused for the midday trading break a smidge lower at 1,442.82. Stocks in the technology, plantation, and financial services sectors reversed gains.

"In such volatile conditions, cash remains the safest asset to hold," Khoo Zing Sheng, a fund manager at Pheim Asset Management, told The Edge.

The Plantation Index fell by 1.1%, while the Technology Index, which surged by over 5% in the morning session, was down 0.8%. The Energy Index dropped 0.5%.

Across Asia, Indonesia's Jakarta Composite Index plunged by more than 9%. Taiwan’s Taiex dropped 4.8%, and Singapore’s Straits Times Index shed 1.6%, all extending sharp losses from Monday.

Japan’s Nikkei 225, however, led gains in the region with a 6.2% surge, while South Korea’s Kospi and Hong Kong’s Hang Seng Index each added over 2%.

Investors are now watching negotiations with the Trump administration on the US’ punitive tariffs imposed on nearly all of its major trading partners and the ensuing fallout. China, Malaysia’s biggest trading partner, on Tuesday vowed countermeasures and will "fight to the end" against the US tariffs.

The comments come after US President Donald Trump threatened to impose an additional 50% levy on Chinese imports if Beijing does not retract its retaliatory 34% tariff increase by Wednesday.

The latest geopolitical developments could intensify volatility in local markets, particularly for export-driven sectors, Apex Securities warned in a note on Monday.

“While specific impacts will depend on the duration and extent of the trade disputes, the overall outlook for the Malaysian market is one of increased risk and potential for further volatility,” the research house said.