KUALA LUMPUR (Oct 15): The Malaysian stock market may track Asian market gains today following the overnight rise in US equities.
In the US, the S&P 500 gained 0.16% while Nasdaq Composite added 0.32%. The Dow Jones Industrial Average, however, fell 0.04%.
The overnight gains in the US have led to the rise in Japanese and US index futures today.
Malaysia's FBM KLCI, which extended losses to close at 1,796.38 yesterday, is deemed oversold. Today, a technical rebound in the KLCI is likely, according to analysts.
AllianceDBS Research Sdn Bhd wrote in a note that "a move above 1,801.81 should prompt risk taking market participants establishing stock positions in anticipation of a technical rebound."
Bloomberg reported that Japanese and US index futures advanced with Australian and New Zealand stocks after the Standard & Poor’s 500 Index rebounded. Oil in New York rose from a two-year low, while the dollar maintained gains.
Nikkei 225 Stock Average futures added 0.6 percent in Chicago, as contracts on the S&P 500 jumped 0.4 percent by 8:26 a.m. in Tokyo, after the U.S. gauge snapped a three-day drop.