Malaysia share gain sustainability watched as China-US trade spat escalates

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KUALA LUMPUR (Aug 24): Malaysian shares may today take cue from news on a new round of tariffs in the China-US trade spat as investors continue to follow Malaysia's corporate earnings during the current financial reporting season.

Against such global and local backdrops, investors may closely watch the sustainabilty of the FBM KLCI's recent gains when Malaysian share trades start at 9am today. 

Yesterday, the KLCI rose 12.76 points to close at 1,810.87. The ringgit was traded at 4.1050 against the US dollar.

US shares fell overnight. Reuters reported that Wall Street's major indexes fell on Thursday as trade-sensitive stocks were hit by a fresh round of tariffs in the trade dispute between the US and China. Despite ongoing talks, the two countries imposed tariffs on US$16 billion worth of each other's goods.

The Dow Jones Industrial Average fell 76.62 points, or 0.3%, to 25,656.98, the S&P 500 lost 4.84 points, or 0.17%, to 2,856.98 and the Nasdaq Composite dropped 10.64 points, or 0.13%, to 7,878.46.