KUALA LUMPUR (Nov 6): Malaysian shares are broadly lower as massive overnight selloff on Wall Street rippled over to Asian markets on Friday. The ringgit weakened.

The benchmark FBM KLCI was down 16.5 points or over 1% to 1,619.36 at 9.10am. Multi-utility company YTL Power International Bhd (KL:YTLPOWR) was the biggest loser in the index, falling more than 3% to RM5.10, and construction giant Gamuda Bhd (KL:GAMUDA) also shed over 3% to RM4.78.

The Trump administration is unlikely to allow the US to lose its competitive edge over China, potentially paving the way for policy compromises, said Pheim Asset Management fund manager Khoo Zing Sheng.

“In the short term, I see this as a necessary, volatile repricing rather than a quick 'buy-the-dip' moment,” he said.

All sectoral indices are in the red. Technology stocks fell the sharpest, mirroring their US counterparts, amid concerns of potentially stricter rules on the artificial intelligence (AI) industry from the congressional Democrats.

ViTrox Corporation Bhd (KL:VITROX), which has the largest market capitalisation in the sector, declined nearly 5% to RM10.10 despite posting its best quarter since listing in 2005.

Overall, losers outnumbered gainers nearly 10 to one.

Asian export-oriented currencies and AI beneficiaries — the Taiwanese dollar, ringgit, and Singaporean dollar — slumped against the US dollar. The ringgit was last trading at 4.0555.

“The sharp deterioration in risk sentiment threatens to outweigh the relief from lower oil prices and US yields in Asia” especially for tech-sensitive currencies such as Taiwanese dollar and South Korean won, MUFG said in its morning trading note.

The near-term direction for the ringgit will be dictated by the broader global risk sentiment, the greenback, expectations for the US Federal Reserve, and oil prices, according to Commerzbank analysts Charlie Lay and Henry Hao.

“We look for consolidation in the near term” between 4.00 and 4.10, they wrote in a joint note.