Shock Election Result Spells Turbulence for Malaysian Markets

Heavy selling anticipated when the Southeast Asian country’s markets reopen next week

Heavy selling looms in Malaysian assets when markets reopen next week, after the country’s opposition coalition pulled off a shock victory in Wednesday’s election.

A U.S.-listed exchange-traded fund of Malaysian stocks slumped 6% on Wednesday, its biggest decline since 2011, while the dollar has risen more than 2% against the ringgit in the derivatives market.

Incoming...