KUALA LUMPUR (Nov 5): The FBM KLCI opened higher before erasing gains as Asian shares fell due to China-US trade dispute concerns and after Malaysia unveiled its Budget 2019.
At 9am, the KLCI opened 5.36 points higher at 1,719.23. At 9:12am, the KLCI fell 11.57 points to 1,702.30.
Reuters reported that remarks by White House economic adviser Larry Kudlow on CNBC about trade talks with China dampened sentiment. It was reported that While President Donald Trump will meet with Chinese President Xi Jinping this month, he has not asked U.S. officials to draw up a proposed trade plan, Kudlow said, contradicting a report earlier in the day that had buoyed hopes of a trade dispute resolution.
Today, MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.2 percent in early trades but was well off a 1-1/2 year trough touched last week. Japan's Nikkei stumbled 1.3 percent while South Korea's Kospi index dipped 0.8 percent, Reuters reported. It was reported that Australian shares were in the negative territory too, down 0.5 percent.
In Malaysia, TA Securities Holdings Bhd wrote in a note that while the welcome surprise over Malaysia's expansionary Budget 2019's higher revenue and lower deficit targets should boost local sentiment, "external uncertainties should continue to weigh."