KUALA LUMPUR (Oct 4): The FBM KLCI edged up in early trade, tracking its regional peers but any gain at the local bourse is seen limited.

At 9.05am, the FBM KLCI was up 0.48 points to 1,796.78.

The early gainers included Nestle (M) Bhd, British American Tobacco (M) Bhd, Aeon Credit Service (M) Bhd, Hong Leong Financial Group Bhd, ViTRox Corp Bhd, Petronas Gas Bhd, Petron Malaysia Refining & Marketing Bhd and Alcom Group Bhd.

 The dollar climbed an 11-month top on the yen on Thursday as stunningly strong U.S. economic data drove Treasury yields to their highest since mid-2011, while Japanese stocks attempted to re-claim a 27-year peak, according to Reuters.

The Nikkei added 0.4 percent on bets the falling yen would boost sales and profits at Japan's many exporters, it said.

Hong Leong IB Research in a traders’ brief said in the US, investors will be trading on a cautious note as the 10-year treasury yield is at 7-year high, is indicating that the underlying economic activity is growing positively and this could be suggesting that the Fed may continue to increase the interest rate.

“Hence, should there be any surprise on the tone of the interest rate hike, profit taking activities may emerge.

“Despite the positive trend on Wall Street, we believe sentiment on the local front would remain subdued ahead of the 11MP mid-term review, which will be tabled on the 18th of October.

“Meanwhile, trading themes that are available for traders in the near term would be on the O&G and export driven stocks on the back of firmer crude oil price and strengthening USD outlook,” it said.