KUALA LUMPUR (July 21): The FBM KLCI fell 0.06 point with Asian shares after the European Central Bank (ECB) president Mario Draghi said the ECB would revisit its bond-buying programme this autumn.

Draghi's comments led to expectation of the ECB's monetary tightening, which does not bode well for Asian markets. This is in anticipation that investors will shift their money to euro-denominated assets on higher interest rate expectations.

At Bursa Malaysia, the KLCI was traded at 1,755.57 points at 9:06am. Japan's Nikkei 225 fell 0.17% while South Korea's Kospi dropped 0.04%.

In Malaysia, TA Securities Holdings Bhd wrote in a note today : "Range-bound trade should persist today, given the absence of positive local catalysts ahead of the weekend, and investor caution over the closely-watched ECB meeting." 

Reuters quoted Daisuke Uno, chief strategist at Sumitomo Mitsui Bank as saying "although bond markets didn't take his (Draghi) comments as something particularly new, the currency market liked the fact that Draghi confirmed his stance towards tapering."

It was reported that the euro held near two-year highs against the dollar on Friday after Draghi said tapering of its stimulus will be on the table this autumn.