KUALA LUMPUR (March 1): The FBM KLCI opened lower this morning in line with the retreat at most regional markets spooked by the pace of interest rate hikes this year in the U,S.

At 9.05am, the FBM KLCI fell 3.08 points to 1,853.12.

The early losers included Nestle (M) Bhd, Ajinomoto (M) Bhd, Hong Leong Bank Bhd, Malayan Flour Mills Bhd, British American Tobacco (M) Bhd, Petron Malaysia Refining & Marketing Bhd, Hartalega Holdings Bhd, Press Metal Aluminium Holdings Bhd and PWF Consolidated Bhd.

Asian stocks skidded on Thursday after comments from the Federal Reserve's new chief rekindled fears about the pace of U.S. monetary tightening this year, sending Wall Street tumbling for its worst performance in two years and lifting the dollar, according to Reuters.

For weeks investors have been on edge, with the recent rout in equities cascading through financial markets amid concerns higher interest rates in advanced economies, led by the United States, could dent world growth, it said.

Hong Leong IB Research in a traders’ brief said that in the US, the heightened volatility may persist as traders will be watching Fed's favourite inflation measure, the core PCE index this coming Thursday.

“Should the data come above consensus, it may fuel the expectations of rate hikes.

“The negative sentiment could further intensify the selling pressure on regional stock markets and Bursa Malaysia, eventually.

“Traders may reassess their portfolio holdings as the reporting season has ended. Meanwhile, KLCI's upside may be capped along 1,870-1,880,” it said.