RIGHT THEN, IN 30 SECONDS

1. Oil above US$104 and falling chip stocks knock Wall Street off record highs: The S&P 500 fell 0.5% and the Nasdaq 1.3% on Thursday as Brent crude rose to US$104.28 and AI-linked chip shares weakened. The 10-year Treasury yield eased back to about 5.23% after a volatile session.
2. RHB sees a RM437.8 billion budget with the deficit near 3.5%: RHB Investment Bank estimates total federal spending of RM437.8 billion for 2027, including RM83 billion of development expenditure, while expecting the fiscal deficit to remain around 3.5% of GDP.
3. Budget 2027 lands this afternoon: Prime Minister Anwar Ibrahim will table Budget 2027 at 3.30pm today. The government has framed the budget around fiscal sustainability, cost-of-living support, strategic investment and energy resilience, while economists expect more attention on middle-income households ahead of the next general election.

Oil above US$104 and falling chip stocks knock Wall Street off record highs

The S&P 500 fell 0.5% and the Nasdaq 1.3% on Thursday as Brent crude rose to US$104.28 and AI-linked chip shares weakened. The 10-year Treasury yield eased back to about 5.23% after a volatile session.

Why it matters: The market is confronting two pressures at once: an energy shock that threatens inflation and a high-rate environment that makes expensive technology valuations harder to defend.

RHB sees a RM437.8 billion budget with the deficit near 3.5%

RHB Investment Bank estimates total federal spending of RM437.8 billion for 2027, including RM83 billion of development expenditure, while expecting the fiscal deficit to remain around 3.5% of GDP.

Why it matters: That gives investors a useful benchmark for judging whether today’s budget is genuinely expansionary or still anchored to consolidation.

Budget 2027 lands this afternoon

Prime Minister Anwar Ibrahim will table Budget 2027 at 3.30pm today. The government has framed the budget around fiscal sustainability, cost-of-living support, strategic investment and energy resilience, while economists expect more attention on middle-income households ahead of the next general election.

Why it matters: The immediate test is whether the government can offer visible relief without loosening the fiscal path it has spent several years establishing.

The Middle East conflict pushes oil markets back into escalation mode

Brent crude surged more than 4% on Thursday amid renewed attacks and uncertainty around Gulf shipping, while explosions were reported in Riyadh and outbound flights were disrupted.

Why it matters: For Asian economies, the critical channel is not only crude supply but freight, refining and insurance costs, all of which can keep inflation elevated even if headline oil later retreats.

The AI financing boom is colliding with a tighter bond market

Global markets were unsettled as large technology companies including SpaceX, Broadcom and Oracle sought major new borrowing for AI infrastructure while sovereign yields remained elevated.

Why it matters: AI investment is increasingly competing for capital rather than existing in a world of cheap money, which raises the hurdle for returns from data centres and chips.

Singapore is openly preparing for an AI correction

Prime Minister Lawrence Wong says Singapore should use the current AI boom to build capabilities and better jobs because ‘no boom is forever’ and a correction will eventually come.

Why it matters: It is a useful regional warning against treating AI-related investment as permanently self-sustaining, especially for economies benefiting from data centres and semiconductor demand.

ASEAN’s digital economy agreement is moving towards a November signing

Philippine President Ferdinand Marcos Jr says the regional Digital Economy Framework Agreement is expected to be signed at the ASEAN summit in November, providing a common roadmap for areas including AI and the digital economy.

Why it matters: If implemented well, the pact could reduce regulatory fragmentation across a region that is trying to behave more like a single digital market.

South Korea launches a US$747 billion green-industrial strategy

Seoul has unveiled a decade-long energy transition plan combining fiscal spending, climate finance and private investment, with targets covering renewables, batteries, heavy industry and clean transport.

Why it matters: This is another sign that climate policy in Asia is increasingly being designed as industrial policy, with governments trying to secure domestic technology and manufacturing advantages.

Washington opens direct talks with Myanmar’s generals

The Trump administration has begun direct engagement with Myanmar’s military-backed government, initially around an American detainee but also involving scam operations and access to rare-earth resources.

Why it matters: Myanmar is becoming a geopolitical and economic issue again, not merely a human-rights file, which complicates ASEAN’s own approach to the regime.

Saudi Aramco is moving into battery-grade lithium

Aramco and oil-services group NESR have agreed to develop a lithium demonstration project in Saudi Arabia aimed at producing battery-grade lithium carbonate.

Why it matters: The project shows Gulf energy producers trying to use oil-sector expertise and capital to secure a position in the battery supply chain rather than treating the energy transition purely as a threat.