KUALA LUMPUR (March 2): The FBM KLCI fell 3.16 points or 0.2% with Asian share markets after US President Donald Trump said the US will impose import taxes on steel and aluminum to protect US manufacturers.

At 12:30pm, the KLCI settled at 1,857.70 points. Japan’s Nikkei 225 dropped 2.37% while Hong Kong's Hang Seng was 1.42% lower. 

In Malaysia, Hong Leong Investment Bank Bhd wrote in a note today : “Market sentiment is likely to turn negative on the back of weaker overnight Dow. (Dow Jones Industrial Average). However, we think the KLCI will be well supported ahead of the GE14 (14th Malaysian general election) and the downside support of the key index will be near the 1,840 level."

Asian shares fell today after US stocks declined overnight. Reuters reported that stock markets in Asia on Friday extended a Wall Street rout, as investors were spooked by the spectre of a global trade war after Trump announced the US would impose hefty tariffs on steel and aluminium imports.  

Trump said duties of 25 percent on steel and 10 percent on aluminium would be formally announced next week, sparking concerns of retaliatory moves from major trade partners like China, Europe and neighbouring Canada in a blow to the global economy.