5 min read I Date: 30 April 2026
Market Data
| Asset Class | Currency | 1-wk | 1-mth | YTD | 2025 | |
| Equities | ||||||
| MSCI World | USD | 0.81% | 8.06% | 5.6% | 19.5% | |
| S&P 500 | USD | 0.9% | 9.9% | 5.6% | 16.4% | |
| Nasdaq | USD | 1.5% | 15.3% | 9.7% | 20.2% | |
| Russell 2000 | USD | 0.9% | 11.9% | 13.3% | 11.3% | |
| Stoxx 600-Europe | EUR | 0.1% | 2.5% | 3.9% | 16.7% | |
| Nikkei 225 | JPY | -1.0% | 10.0% | 18.1% | 26.2% | |
| KOSPI | KRW | 1.6% | 20.0% | 56.1% | 75.3% | |
| MSCI Asia Pac ex-Japan | USD | -0.3% | 10.0% | 13.9% | 26.9% | |
| ASEAN | USD | -0.3% | -0.7% | -0.4% | 12.0% | |
| Shanghai Shenzhen CSI 300 | CNY | 0.8% | 6.3% | 3.8% | 17.7% | |
| Hang Seng | HKD | -0.8% | 1.7% | 0.3% | 28.2% | |
| Shanghai Stock Exchange Composite | CNY | 0.8% | 4.2% | 3.3% | 18.6% | |
| FBM Emas Shariah | MYR | 0.8% | 3.6% | 5.0% | -3.9% | |
| FBMKLCI | MYR | -0.1% | -0.8% | 2.4% | 2.4% | |
| Fixed Income | ||||||
| Bberg Barclays Global Agg | USD | 0.1% | 0.9% | 0.4% | 8.2% | |
| JPM Asia Credit Index-Core | USD | -0.1% | 0.7% | 0.5% | 9.1% | |
| Asia Dollar Index | USD | -0.1% | 0.7% | 0.0% | 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 30 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. Strong gains were seen in the US, supported by blockbuster corporate earnings and robust consumer spending. Meanwhile, European markets posted negative returns, as sentiment remained pressured by a sharp rise in energy costs and heightened geopolitical risks cantered around the Middle East.
In Asia, sentiment remained mixed. Thailand was the standout winner, showing the strongest growth in the region, followed by healthy gains in South Korea and China. Conversely, notable weakness was seen in Indonesia and the Philippines.
- In the bond market, the US 10-year Treasury yield was held below 4.45% (as of 30 April), as easing oil prices and a fresh round of economic data prompted investors to reassess interest rate expectations. (Note: bond prices move inversely to yields.)
Macro Factors
- In the United States, the Fed held interest rates steady at 3.5%–3.75% for the third straight meeting, though the 8-4 vote saw the highest level of dissent since 1992. While one member pushed for a rate cut, three others opposed language hinting at future easing, reflecting deep internal divisions amid Middle East-driven economic uncertainty. The committee remains data-dependent and ready to adjust policy as risks evolve, while Jerome Powell confirmed he will stay on as a governor after his term as Chair concludes. Meanwhile, the core PCE price index rose by 0.3% from the previous month in March 2026, following a 0.4% increase in February.2
- In Europe, flash data showed GDP expanded by 0.8% in Q1 2026, marking the slowest growth since Q2 2022 and missing forecasts, as a Middle East energy crunch driven by regional conflict triggered a surge in fuel costs. The expansion fell from 1.3% in the previous quarter, largely attributed to these increased energy prices starting in March. Annual inflation was reportedly climbed to 3% in April 2026, the highest since September 2023, up from 2.6% in March and slightly above market expectations of 2.9%, according to a preliminary estimate.3
- In China, manufacturing sector showed resilience in April, with the official PMI staying in expansion at 50.3 and the private RatingDog PMI surging to 52.2—its highest since late 2020. This industrial strength persists despite Middle East energy risks, even as attention shifts to President Trump’s mid-May visit, which is expected to prioritize discussions on Taiwan. Meanwhile, domestic bond markets will pause for the Labour Day holiday from May 1–5.4
- In Malaysia, producer prices rose 1.1% year-on-year, ending a year-long deflationary streak and marking the first increase since early 2025. This rebound was primarily fueled by a 26.5% surge in the mining sector—led by a spike in crude petroleum extraction—alongside accelerating costs in utilities like electricity and gas.5
Investment Strategy6
The recent debate has been about market reactions to a hawkish hold by the Federal Reserve and surging oil prices caused by the ongoing Iran conflict. Policymakers typically look through supply shocks such as oil spikes, and if oil prices remain high, yields should also fall over the medium term as recession risks rise and rate cuts come back into focus. 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, 30 April 2026
2 Bloomberg, Bureau of Labor Statistics (BLS), ISM, S&P Global, US Federal Board, 30 April 2026
3 S&P Global, ECB, Factset, Bank of England (BoE), 30 April 2026
4 Bloomberg, National Bureau of Statistic China, CEWC, 30 April 2026
5 Department of Statistic Malaysia, S&P Global, 30 April 2026
6 Principal view, 30 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.