KUALA LUMPUR (Nov 14): The FBM KLCI declined 17.55 points or 1.1% on expectation that US President-elect Donald Trump's expansionary fiscal plans for the US economy will lead to higher inflation and interest rates there.

Higher US interest rates do not bode well for Asian markets in anticipation that investors will shift their money into US dollar-denominated assets.

At 5pm, the KLCI closed at 1,616.64 points. Across Asian share markets, Hong Kong's Hang Seng Index dropped 1.37% while South Korea's Kospi fell 0.51%.

In Malaysia, Areca Capital Sdn Bhd chief executive officer Danny Wong Teck Meng told theedgemarkets.com that the market remained volatile. At current levels, Wong said Malaysian stocks and the ringgit were deemed oversold.

"If you are a risk-taker, you may want to take some positions on the blue chips. But if you are not (a risk-taker), staying on the sidelines until the market stabilises is not a bad option either," Wong said.

The KLCI's 17.55-point drop today followed an 18.55-point fall last Friday (Nov 11).

In currency markets today, the ringgit was traded at 4.3305 against a strengthening US dollar compared to 4.2017 last Tuesday (Nov 8).

Republican candidate Trump beat Democratic candidate Hillary Clinton in the recent US presidential election.

Analysts said Trump's victory against Clinton had created uncertainty on US policies on the world political and economic backdrops.