KUALA LUMPUR (March 26): The FBM KLCI drifted lower in early trade this morning, tracking losses at most regional markets, spooked by the spectre of a trade war between the US and China.

At 9.05am, the FBM KLCI fell 4.13 points to 1,861.09.

The top losers included Dutch Lady Milk Industries Bhd, Nestle (M) Bhd, Jaycorp Bhd, Public Bank Bhd, Malaysian Pacific Industries Bhd, AirAsia Bhd, Press Metal Aluminium Holdings Bhd, CIMB Group Holdings Bhd and JHM Consolidation Bhd.

Fears of a full-blown trade war between the United States and China battered Asian shares again on Monday, keeping the safe haven yen near a 16-month peak as investors fretted over the fate of global growth, according to Reuters.

Japan's Nikkei stumbled 0.9 percent to a near six-month trough in early trade, due in part to worries over the stronger yen squeezing export earnings, it said.

JF Apex Securities Research in a market preview said US markets plunged on Friday following escalating concerns of a trader war with China.

It said that similarly, European stocks posted sharp losses led by automotive counters following fears of China retaliating to US' tariffs.

“On the local market, the FBM KLCI tumbled 11.65 points to 1865.22 points.

“Following the bearish performance in the US and Europe, the FBM KLCI is expected to extend its selldown today towards the support of 1840 points,” it said.