European shares advanced and US equity futures drifted with Asian stocks as investors hit pause on a selloff triggered by worries over growing threats to global trade.
The Stoxx Europe 600 Index declined as every industry sector fell, with futures on the Dow Jones and S&P 500 indexes pointing to a lower open.
European equities gained alongside US futures, while emerging-market stocks slid.
Fund managers and strategists give their thoughts on how investors should position themselves in the midst of US-China trade war.
The world's worst-performing bonds just one week ago soared as investors convinced Mahathir will follow through on vows to fully investigate the fund.
Bond investors and rating companies are worried that plans to scrap the GST and reinstate fuel subsidies may hurt efforts to narrow a persistent budget shortfall.
Analysts say if Najib Razak returns to power, it would be a net positive for Malaysian assets although an opposition victory would not necessarily affect the country's economic fundamentals.
Investors have sold 3.924 trillion yen (US$36.68 billion) of US dollar bonds in February but scooped up 1.059 trillion yen of euro-denominated bonds - which offer higher yields after currency hedging.
China's economic growth accelerated last year and comfortably beat the government's target, giving policymakers leeway to crack down on riskier lending practices and slow credit expansion.
Australian PM Malcolm Turnbull declines to comment on his son's remarks about Goldman Sachs-1MDB dealings, while Alex Turnbull says he was misquoted, SMH reports.
Indonesia's Finance Ministry says proceeds from its green bonds will be used to finance projects such as renewable energy, green tourism and waste management.
Investment in Asia bonds is partly a bet on region's relatively strong economic growth, IMF forecasts Asia-Pacific GDP will rise 5.5% in 2017 and 5.4% in 2018.
Foreign holding of government bonds has fallen to 46% of the total outstanding value, from 51.6% in October.
Prof Hoo Kee Ping says the fact that it can give returns during the economic downturn shows the share market is doing well, too.
This is largely due to debt maturities, according to a Bloomberg report.
Fitch Ratings affirms Malaysia’s long-term foreign and local-currency issuer default ratings (IDRs) at "A-" with stable outlook, reflecting the country’s strong net external creditor position.