KUALA LUMPUR (Feb 5): The FBM KLCI fell 23.86 points or 1.3% when the Malaysian stock market opened today as investors took their cue from higher US bond yields amid US interest rate hike expectation. Analysts said Malaysian shares may also be ripe for a correction due to overbought technical momentum.

At 9am, the KLCI opened at 1,846.62 points before falling to 1,846.47 points at 9:04am. Malaysian shares fell with Asian stock markets.

Japan's Nikkei 225 declined 2%, South Korea's Kospi dropped 1.75% while Australia's S&P/ASX 200 was 1.29% lower. Reuters reported that Asian share markets stumbled on Monday as fears of resurgent inflation battered bonds, toppled Wall Street from record highs and sparked speculation central banks globally might be forced to tighten more aggressively

In Malaysia, TA Securities Holdings Bhd wrote in a note today : "Extreme overbought technical momentum indicators on the FBM KLCI, highlighted by a daily stochastics sell signal, implies higher probability for a long overdue overbought correction this week. Moreover, given the sharp correction on Wall Street last Friday triggered by the stronger-than-expected January jobs data which increased worries over rising US interest rates and inflation risk, a profit-taking pullback should spillover from the region."