KUALA LUMPUR (Feb 6): The FBM KLCI fell 50.04 points or 2.7% with Asian shares after US equities' substantial overnight decline. World shares fell amid concerns on rising US bond yields and US interest rate hike expectation.

At 12:30pm, the KLCI settled at 1,803.03 points. Across Asia, Japan's Nikkei 225 fell 6.06%, South Korea's Kospi dropped 1.83% while Hong Kong's Hang Seng was 3.88% lower.

In Malaysia, Rakuten Trade Sdn Bhd vice president of research Vincent Lau told theedgemarkets.com despite the KLCI's drop, the research firm remains cautiously optimistic on the market.

"We heard of some positive announcement at the World Capital Markets Symposium 2018 (in Kuala Lumpur). It should be good for small and mid-cap markets moving forward," Lau said.