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Dollar and US yields ease as Dow gains, improving global funding tone
The Rio Times’ October 16 global economy briefing said the Dow gained 1.08% as the dollar and US yields eased. The briefing said lower US yields reduce the global cost of dollar funding and give Latin American central banks more room to manage their own cycles.
The report also cited prediction-market pricing for Federal Reserve decisions, with no change at the October meeting seen as the higher-probability outcome and a December rate increase priced more strongly. The key cross-market signal is that US yield moves remain central to emerging-market monetary flexibility.
Easier dollar funding conditions can support emerging-market currencies, sovereign debt and corporate refinancing, including in Latin America and Asia.
Watch US Treasury yields, dollar index moves and central-bank guidance in Brazil, Mexico and ASEAN economies.
Zetrix faces RM2.16 billion sukuk obligations if covenant breach is not cured by October 22
Zetrix AI said it could face RM2.16 billion in sukuk payment obligations if it fails to resolve a covenant breach by October 22. The breach arose after forced share sales cut managing director Wong Thean Soon’s combined direct and indirect holding to 1.895%, below the requirement that he remain the company’s largest shareholder.
The company said the amount comprises RM2 billion of principal and RM164.5 million of future coupon payments. Zetrix shares fell 15.38% to 5.5 sen on Friday after touching five sen intraday, and the company is also under police investigation over unremitted Road Transport Department collections.
The case is a major test of governance, disclosure and creditor protection in Malaysia’s sukuk market, especially for digital-services issuers with public-sector collection roles.
The immediate trigger is October 22, when Zetrix must cure the breach or seek sukuk-holder approval for a waiver or further instructions.
US-Mexico tariff talks hit new doubt over steel, aluminium and autos
MarketOne’s October 16 briefing said US-Mexico trade friction resurfaced after Commerce Secretary Howard Lutnick objected to proposed tariff cuts on Mexican steel, aluminium and autos. The briefing said the objection kept Alcoa and automakers in market focus.
The dispute matters because steel, aluminium and autos sit at the centre of North American manufacturing supply chains. Renewed tariff uncertainty could delay sourcing decisions and affect cost assumptions for manufacturers exposed to the US-Mexico corridor.
Tariff uncertainty in North America can ripple into global metals pricing, auto supply chains and investment decisions by firms using Mexico as a nearshoring base.
Watch formal US-Mexico statements, tariff-rate announcements and company guidance from automakers and metals producers.
Malaysia says data-centre investors must bear necessary grid-upgrade costs
Investment, Trade and Industry Minister Johari Abdul Ghani said data-centre investors should bear necessary grid-upgrade costs as part of project expenditure. He said Tenaga Nasional should advise on required upgrades, and data-centre electricity needs should be treated separately from household and industrial demand.
Johari said data centres should not receive subsidies and that where generation uses gas, market gas prices should be reflected in the cost of supply. The comments come amid rapid AI-driven data-centre investment and growing concern over power and water constraints.
The policy stance could change project economics for hyperscalers and developers, while protecting households and other industries from cross-subsidising energy-intensive digital infrastructure.
Watch whether the government formalises separate tariffs or grid-contribution rules for new data-centre approvals.
Energy Commission fixes CRESS access charge at 14 sen/kWh for eligible renewable developers
Malaysia’s Energy Commission said eligible renewable-energy developers under the CRESS Acceleration Package will receive a fixed system access charge of 14 sen per kilowatt-hour for 10 years. Green consumers will pay a separate CRESS charge of four sen/kWh based on the current Regulatory Period 4 tariff.
The fixed-rate arrangement applies to eligible projects that achieve commercial operation by December 31, 2028 and commit to at least a 10-year contract. The commission said around three gigawatts of projects are in the CRESS pipeline, while supplementary guideline amendments are expected by November.
The tariff clarity improves bankability for corporate renewable procurement, a key issue for data centres and export manufacturers facing power-cost and ESG constraints.
Watch the November CRESS guideline amendments and whether projects in the three-gigawatt pipeline reach financial close under the fixed access-charge structure.
AI stocks swing after TSMC beat and CoreWeave sell-off
US markets steadied on Thursday despite sharp intraday moves in AI-linked stocks, with TSMC’s US-listed shares falling as much as 5.3% before closing down 1.8%. CoreWeave fell as much as 9.5% after a 15.5% tumble the previous day.
TSMC reported profit above expectations and said strong demand should continue in the final three months of 2026. Nvidia, the largest weight on the S&P 500, also declined, reflecting how concentrated AI exposure has become in major US indices.
The divergence between strong AI fundamentals and weak share-price reaction shows markets are now questioning valuation, leverage and funding assumptions around the AI build-out.
Watch CoreWeave funding conditions, Nvidia’s next earnings and whether AI infrastructure companies can refinance at acceptable spreads.
Deputy minister proposes requiring data centres to generate their own electricity
Deputy Energy Transition and Water Transformation Minister Abdul Rahman Mohamad proposed that Malaysia require data-centre operators to generate their own power as part of a review of the sector’s energy and water consumption. The proposal came as renewable energy accounted for nearly 32% of installed capacity, or about 14,000MW, as of September 1.
The review reflects concern that energy-intensive AI and cloud infrastructure could outpace grid capacity and water availability. A self-generation requirement would shift more responsibility for supply security and emissions management onto operators.
A self-power requirement would materially affect site selection, capital costs and the sustainability claims of Malaysia’s data-centre pipeline.
Watch whether the proposal becomes a formal approval condition and whether developers respond with captive solar, gas or hybrid power plans.
Indonesian stocks suffer worst one-day fall since 1998 after MSCI flags standalone downgrade
Indonesian equities plunged as much as 11.4% on Friday after MSCI said the market no longer qualified for emerging-market status and could be moved to standalone classification. The fall took the benchmark to its lowest level since early November 2020 and made it the worst one-day drop since January 1998.
MSCI’s move threatens capital outflows from passive and benchmark-tracking investors, and Jakarta stocks have now lost nearly 40% this year. The shock hit Southeast Asia’s largest economy at a time when regional investors are already reassessing liquidity, governance and index eligibility risks.
An MSCI reclassification would alter global fund allocation to Indonesia and could spill into ASEAN risk pricing, currencies and foreign-flow assumptions.
Watch MSCI’s formal consultation and implementation timetable, plus Bank Indonesia and Jakarta exchange measures to stabilise market liquidity.
Palm-oil shares fall after Singapore probes haze-linked companies
Palm-oil producers’ shares fell on October 16 after Singapore said it was looking into which companies may be responsible for haze-causing fires. First Resources defended itself on October 15, saying fires detected within its Indonesian concessions were largely caused by external blazes spreading across its boundaries.
Indonesia said on October 15 that peatland degradation from past food estates contributed to its worst wildfire season in 11 years and pledged to restore peat ecosystems. The market reaction shows investors are pricing legal, reputational and operational risks into plantation names.
Haze enforcement can affect listed plantation groups, palm-oil supply chains and ESG risk premiums for companies with Indonesian concessions.
Watch NEA’s company notices, Indonesia’s concession-level enforcement and investor response in Singapore- and Malaysia-listed plantation stocks.
Global agenda on October 16 dominated by pressures across North America, Europe, Middle East, Asia-Pacific and Latin America
A global news brief published on October 16 said the international agenda was dominated by developments across North America, Europe, the Middle East, Africa, Asia-Pacific and Latin America. It highlighted political tensions, economic pressure and social unrest in Latin America as part of the broader global risk picture.
The brief is less specific than primary market or government sources, but it captures the breadth of simultaneous political and economic stress points. For cross-regional readers, the relevant point is that global risk is dispersed rather than concentrated in a single theatre.
Distributed political and economic stress can raise volatility across commodities, currencies and supply chains, especially for open economies dependent on external demand.
Watch whether country-specific developments in Latin America translate into commodity, sovereign-spread or currency moves over the next trading week.
China proposes export curbs on 40 technologies spanning AI, chips and solar
China said on Friday it plans to restrict or ban exports of 40 technologies covering artificial intelligence, semiconductors and solar power. The Ministry of Commerce and Ministry of Science and Technology published draft updates to China’s catalogue of technologies subject to export bans or restrictions.
The proposal includes 23 AI technologies, including advanced large models and agents, and would prohibit exports of core AI model technologies trained on sensitive national data. It also covers chip-design technologies and solar manufacturing know-how, including polysilicon-related processes.
The proposal marks a broader Chinese counterweight to US-led technology controls and could fragment access to AI models, chip design and clean-energy manufacturing know-how.
Watch the consultation process, final catalogue wording and whether named AI, chip or solar firms seek licences or restructure offshore technology transfers.
