KUALA LUMPUR (Sept 1): The FBM KLCI, which opened at its intraday high, fell 3.53 points or 0.2% as weaker China manufacturing data hurt Asian shares.

Malaysia's KLCI settled at 1,609.21. Malaysian markets were closed for the National Day holiday yesterday (Aug 31).

Today, the KLCI had earlier reached its intraday high at 1,660.22, before reaching a low at 1,603.25, giving the index a range of 56.97 points.

Across the region, Japan’s Nikkei 225 fell 3.84%, while South Korea’s Kospi dropped by 1.4%. In China, the Shanghai Composite Index dipped 1.3%, while Hong Kong’s Hang Seng declined 2.24%.

Reuters reported Asian shares fell on Tuesday and the dollar struggled, after twin surveys showed China's manufacturing sector in the grip of its worst slump in several years, raising fresh fears about the health of its economy.

China's official purchasing managers index fell to 49.7 in August, from the previous month's reading of 50.0, the weakest showing in three years.

In Malaysia, Kenanga Investment Bank Bhd's research head Chan Ken Yew said the share market might need further catalysts to sustain a consistent uptrend.

From a technical viewpoint, Chan said the KLCI was still "consolidating."

“Technically, the first round of sell down is probably completed based on KLCI’s performance in the past few market days. But the market is still within consolidation, sentiment is not excited now.

"Whether the rebound last week is sustainable, we still have to monitor,” he told theedgemarkets.com over the phone.

Across Bursa Malaysia, 369 counters gained, 400 counters lost, while 326 remained unchanged. Volume traded today was 2.06 billion shares, worth RM2.6 billion.

Top gainer was Batu Kawan Bhd, while the biggest decliner was British American Tobacco (M) Bhd.

Most-active counters included KLCI-linked put warrants. These warrants closed higher, as investors bought these units to hedge against broader market losses.
 
Gains in oil and gas-related shares like SapuraKencana Petroleum Bhd and TH Heavy Engineering Bhd were closely watched, after crude oil prices jumped some 8% yesterday, before paring gains today.

Reuters reported oil futures soared on Monday for a third consecutive day, rising more than 8%, as a downward revision of U.S. crude production data and OPEC's readiness to talk with other producers, helped extend the biggest three-day price surge in 25 years.

Today, SapuraKencana, the 10th most-active stock, rose seven sen or 4% to settle at RM1.79.

TH jumped as much as 3.5 sen or 23% to 19 sen. The stock closed at 17 sen, with some 17 million shares done.

In currency markets, the ringgit strengthened significantly to 4.1645 against US dollar, partly helped by higher prices of crude oil. The commodity forms a crucial portion of the Malaysian economy.

The ringgit also strengthened on news China was planning to stabilise the yuan, following a devaluation.

Reuters reported  most emerging Asian currencies rose on Tuesday, helped by a Reuters report that China was planning fresh moves to stabilise the yuan, though sentiment toward the region stayed bearish, after a survey showed Chinese factory activity had slumped.

China's central bank will tighten rules on trading of currency forwards from October, sources with direct knowledge of the matter told Reuters, in a move to stem speculation and volatility, after a shock devaluation of the yuan last month.