KUALA LUMPUR (June 7): The FBM KLCI extended its gains in early trade this morning in line with the overnight rally at Wall Street and regional markets today.

At 9.05am, the FBM KLCI rose 3.96 points to 1,781.09.

A global stocks rally extended its run in Asia Thursday on confidence the global economic expansion remains in tact and on hopes a full-blown trade war will be averted. Treasuries fell, sending 10-year yields back up towards 3 percent, according to Bloomberg.

Equities in Japan, South Korea and Australia gained after the S&P 500 Index rose for a fourth consecutive day. The Nasdaq Composite Index chalked up another record high. European markets had come under pressure, with the region’s bonds sinking and stocks fluctuating on signs that the European Central Bank is ready to discuss an end to quantitative easing. Record American exports helped shrink the U.S. trade deficit in April, data showed Wednesday, underscoring forecasts for robust second-quarter growth, it said.

The gainers included Carlsberg Brewery Malaysia Bhd, Malaysian Pacific Industries Bhd, Petron Malaysia Refining & Marketing Bhd, Telekom Malaysia Bhd, Heineken Malaysia Bhd, Genting Bhd, KESM Industries Bhd, Top Glove Corp Bhd, Malaysia Airports Holdings Bhd and Malayan Banking Bhd.

JF Apex Securities Research in a market preview said US markets rallied overnight following gains in banking counters with the expectation of interest rate hike.

It said that earlier, European stocks ended mixed after new Italian Prime Minister proposed to cut taxes and crackdown on immigration.

“On the local bourse, the FBM KLCI rallied 21.99 points to 1777.13 points on local buying interest.

“Following the bullish performance in Wall Street, the FBM KLCI could extend its rebound towards the resistance of 1800 points,” it said.