Oil prices rose on Thursday, buoyed by optimism over US trade negotiations that would ease pressure on the global economy and a sharper-than-expected decline in US crude inventories.

Shares in Asia rallied and the Australian dollar hit an eight-month high on Thursday, as optimism over earnings and trade supported demand for higher yielding assets.

US President Donald Trump suggested that he would not go below 15% as he sets so-called reciprocal tariff rates ahead of an Aug 1 deadline, an indication that the floor for the increased levies was rising.

Bad debts at Malaysian banks could rise this year and in 2026, from potential credit risks amid higher US tariffs, CGS International flagged on Thursday.

Chief Executive Elon Musk said on Wednesday that U.S. government cuts in support for electric vehicle makers could lead to a "few rough quarters" for the company before a wave of revenue from self-driving software and services begins late next year.

Malaysia has once again called on its Asean counterparts to deepen intra-regional trade and reduce dependence on external trading partners, as global trade tensions mount.