FBM KLCI up after starting lower amid China-US trade war thaw hopes

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KUALA LUMPUR (Jan 18): The FBM KLCI rose after opening lower today as global investors took cue from a a report by The Wall Street Journal that US Treasury Secretary Steven Mnuchin discussed lifting some or all tariffs imposed on Chinese imports.

Such sentiment led to anticipation of a thaw in the China-US trade war. At Bursa Malaysia, the KLCI opened 0.67 point lower at 1,682.30 at 9am. At 9:05am, the KLCI rose 0.21 point to 1,683.18.

"In the absence of a positive catalyst, weak follow-through buying momentum and cautious external tone clouded by global growth worries should continue to restrict recovery upside," TA Securities Holdings Bhd wrote in a note today.

Overnight at the US stock market, Reuters reported that the Dow Jones Industrial Average rose 162.94 points or 0.67 percent to 24,370.1, the S&P 500 gained 19.86 points or 0.76 percent to 2,635.96 and the Nasdaq Composite added 49.77 points or 0.71 percent to 7,084.46.

It was reported that US stocks advanced overnight on Thursday as hopes of a resolution to the trade dispute between the US and China boosted industrial shares and lifted investor sentiment. It was reported that stocks spiked higher in afternoon trading after The Wall Street Journal reported that Mnuchin discussed lifting some or all tariffs imposed on Chinese imports and suggested offering a tariff rollback during trade discussions scheduled for January 30.

A Treasury spokesman was quoted as saying that Mnuchin had not made any such recommendations.