5 min read I Date: 24 April 2026
Market Data
| Asset Class | Currency | 1-wk | 1-mth | YTD | 2025 | |
| Equities | ||||||
| MSCI World | USD | -0.35% | 8.49% | 4.7% | 19.5% | |
| S&P 500 | USD | 0.5% | 9.2% | 4.6% | 16.4% | |
| Nasdaq | USD | 2.4% | 13.7% | 8.1% | 20.2% | |
| Russell 2000 | USD | 0.4% | 11.2% | 12.2% | 11.3% | |
| Stoxx 600-Europe | EUR | -2.3% | 5.9% | 3.8% | 16.7% | |
| Nikkei 225 | JPY | 2.1% | 15.0% | 19.3% | 26.2% | |
| KOSPI | KRW | 4.5% | 16.6% | 53.5% | 75.3% | |
| MSCI Asia Pac ex-Japan | USD | 1.2% | 10.8% | 14.1% | 26.9% | |
| ASEAN | USD | -2.6% | 1.3% | -0.1% | 12.0% | |
| Shanghai Shenzhen CSI 300 | CNY | 0.9% | 6.7% | 2.9% | 17.7% | |
| Hang Seng | HKD | -0.7% | 3.4% | 1.1% | 28.2% | |
| Shanghai Stock Exchange Composite | CNY | 0.7% | 5.1% | 2.5% | 18.6% | |
| FBM Emas Shariah | MYR | 1.1% | 3.3% | 4.2% | -3.9% | |
| FBMKLCI | MYR | 1.5% | -0.4% | 2.5% | 2.4% | |
| Fixed Income | ||||||
| Bberg Barclays Global Agg | USD | -0.6% | 1.3% | 0.3% | 8.2% | |
| JPM Asia Credit Index-Core | USD | -0.1% | 1.6% | 0.6% | 9.1% | |
| Asia Dollar Index | USD | -0.6% | 0.6% | 0.1% | 3.3% | |
| Top Performing Principal Funds | ||||||
| Equities | 1-mth as of (28 Feb 2026) | YTD as of (28 Feb 2026) | ||||
| Principal Islamic Asia Pacific Dynamic Equity MYR | 11.34 | 25.07 | ||||
| Principal Asia Pacific Dynamic Growth - USD | 0.12 | 3.18 | ||||
| Principal Dynamic Growth - USD | -0.73 | -5.27 | ||||
| Balanced | ||||||
| Principal Asia Pacific Dynamic Mixed Asset MYR | 0.29 | -0.80 | ||||
| Principal Islamic Lifetime Balanced | -1.27 | -0.65 | ||||
| Principal Heritage Balanced MYR Hedged | -1.60 | -3.47 | ||||
| Fixed Income | ||||||
| Principal Lifetime Enhanced Bond | 0.27 | 0.79 | ||||
| Principal Sustainable Dynamic Bond MYR | 0.27 | 0.79 | ||||
| Principal Sustainable Conservative Bond MYR | 0.27 | 0.80 |
Source: Bloomberg, market data is as of 24 April 2026.
*As we emphasise a long-term focus, the top performing funds were selected *based on monthly performance.
*The numbers may show as negative if there is no positive return for the period under review.
*The fund performance was referenced from the daily performance report, data was extracted from Lipper.
*The performance figures are based on the fund’s respective currency class.
Past performance is not an indication of future performance.
Market Review1
- This week, global equity markets showed mixed results as initial optimism over a potential ceasefire extension in the Middle East was tempered by ongoing tensions in the Strait of Hormuz. While some major U.S. and European indices experienced recent pullbacks, others remained near record levels supported by robust corporate earnings and hopes for further peace talks.
In Asia, sentiment was largely driven by positive economic data and a surge in the technology sector, with markets in South Korea and Taiwan vaulting to record highs. Conversely, Thailand's SET index posted negative returns as it was pressured by foreign outflows and domestic growth concerns
- In the bond market, the US 10-year Treasury yield was little changed at the 4.30% range (as of April 25). This follows developments in the Middle East, with report indicating that the government is expecting a “high likelihood of a breakthrough” in US–Iran talks in Islamabad. Meanwhile, traders also digested news that a probe into Fed Chair Powell is being dropped. (Note: bond prices move inversely to yields.)
Macro Factors
- In the United States, investors remained focused on tensions in the Middle East and the ongoing standoff between the US and Iran. In the latest developments, President Trump ordered the Navy to target any vessels laying mines in the Strait of Hormuz. With the U.S. enforcing a blockade and Iran stalling maritime traffic, oil prices stay elevated. Meanwhile, the Fed is expected to hold rates steady, with markets now pricing in only a 26% chance of a December cut—a significant shift from earlier forecasts.2
- In Europe, manufacturing PMI climbed to 52.2 in April 2026 from 51.6 in March, surpassing expectations of 50.8 and marking the strongest improvement in business conditions since May 2022. Production growth hit its fastest pace since August 2025, while new orders expanded at the quickest rate in four years, boosted by the first rise in export demand since February 2022. However, some of this growth stemmed from customers stockpiling amid fears of price hikes and supply shortages due to the Middle East conflict.3
- In China, the impact of the US-Iran conflict remains contained. Strong energy security—bolstered by strategic reserves, diversified imports, and a rapid shift to renewables—has successfully mitigated risks from potential supply disruptions. Domestic attention is now shifting toward the National People’s Congress (NPC) Standing Committee session from April 27–30. Lawmakers are set to review draft revisions to the Prison Law, alongside legislative changes concerning national defense mobilization, the agriculture law, and state-owned assets.4
- In Malaysia, the annual inflation rate slowed to 1.4% in February 2026 from an eleven-month high of 1.6% in the previous month and below market forecast of 1.6%. Core inflation, which excludes volatile fresh food and administered prices, eased to 2% from 2.3% in January, marking the softest in six months. Trade surplus widened to MYR 16.7 billion in February 2026, from MYR 12.6 billion in the same month last year, though it fell short of market expectations.5
Investment Strategy6
We maintain our constructive medium-term outlook for equities and fixed income but are also mindful of potential risks. US inflation data, the peace talks, and tech earnings in the next days could all shape markets for the coming week.
Our recommendation for long-term investors is clear: Stay invested. We believe investors can navigate current challenges and capture future opportunities by staying invested, diversifying, and hedging.
In this environment, our strategy focuses on quality growth companies with domestic earnings, supplemented by quality bonds for portfolio stability during uncertainty.
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Sources:
1 Bloomberg, 24 April 2026
2 Bloomberg, Bureau of Labor Statistics (BLS), ISM, S&P Global, US Federal Board, 24 April 2026
3 S&P Global, ECB, Factset, Bank of England (BoE), 24 April 2026
4 Bloomberg, National Bureau of Statistic China, CEWC, 24 April 2026
5 Department of Statistic Malaysia, S&P Global, 24 April 2026
6 Principal view, 24 April 2026
*SEZ refers to Special Economic Zone
*PMI refers to Purchasing Manufacturing Index
*HCOB refers to Hamburg Commercial Bank
*NBS PMI refers to official data released by National Bureau of Statis in China
*Caixin PMI refers to data published by Caixin Media and ISH Markit. It provides alternative gauge focusing on smaller and medium-sized enterprises.
*ECB refers to European Central Bank
*PBOC refers to People’s Bank of China
*PCE refers to Personal Consumption Expenditure
*FOMC: Federal Open Market Committee
*y-o-y refers to year on year
*m-o-m refers to month on month
*UST refers to United States Treasury
*BNM refers to Bank Negara Malaysia
* Caixin decided to end its title sponsorship of the S&P Global China Purchasing Managers' Index (PMI) as of July 2025. This decision was part of a "strategic adjustment" for Caixin, aligning with its long-term development needs. Caixin had been the title sponsor since 2015, using it as a way to expand into the data sector and analyze China's economic transformation. Following Caixin's departure, RatingDog (Shenzhen) Information Technology Co., Ltd., a Chinese credit research and bond rating company, successfully acquired the exclusive naming rights for the "S&P Global China PMI". Starting with the August 2025 data release, the index was officially renamed the "RatingDog China PMI". S&P Global continues to be responsible for compiling and releasing the monthly report.
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Disclaimer: We have based this document on information obtained from sources we believe to be reliable, but we do not make any representation or warranty nor accept any responsibility or liability as to its accuracy, completeness, or correctness. Expressions of opinion contained herein are those of Principal Asset Management Berhad only and are subject to change without notice. This document should not be construed as an offer or a solicitation of an offer to purchase or subscribe or sell Principal Asset Management Berhad’s investment products. The data presented is for information purposes only and is not a recommendation to buy or sell any securities or adopt any investment strategy. This material is not intended to be relied upon as a forecast, research, or investment advice regarding a particular investment or the markets in general, nor is it intended to predict or depict performance of any investment. We recommend that investors read and understand the contents of the funds’ prospectus and product highlights sheet available on the Principal website, which have been duly registered with the Securities Commission Malaysia (SC). Registration of these documents does not amount to nor indicate that the SC has recommended or endorsed the product or service. There are risks, fees and charges involved in investing in the funds. You should understand the risks involved, compare, and consider the fees, charges and costs involved, make your own risk assessment, and seek professional advice, where necessary. This article has not been reviewed by the SC.