KUALA LUMPUR (Aug 16): The FBM KLCI opened lower today as Asian shares took cue from US equities' overnight drop. Reuters reported that Wall Street fell in a day of heavy trading on Wednesday with the S&P 500 posting its biggest percentage drop since late June as investors turned risk-averse on disappointing earnings and escalating global tariff worries.

It was reported that the trade fracas heated up as Turkish President Tayyip Erdogan doubled tariffs on some U.S. imports, and China lodged a complaint with the World Trade Organization against American trade policies.

In Malaysia, the KLCI opened 4.04 points lower at 1,781.90 at 9am. At 9:12am, the KLCI fell 7.92 points to 1,778.02.

"Until we see a resolution to the financial crisis in Turkey, stocks are likely to extend sideways trading with downward bias as investors are expected to continue to reduce exposure," TA Securities Holdings Bhd wrote in a note today.

Overnight in the US, the Dow Jones Industrial Average dropped 0.54%, the S&P 500 fell 0.76% while the Nasdaq Composite was 1.23% lower. Reuters quoted JJ Kinahan, chief market strategist at TD Ameritrade in Chicago as saying : "A combination of fears of contagion from Turkey and a possibility of a China slowdown has upset markets worldwide."