KUALA LUMPUR (May 24): The FBM KLCI settled up 3.67 points or 0.23% on bargain hunting today and after crude oil prices rebounded following a substantial overnight drop of some 5%. Concerns on the escalating US-China trade war's potential impact on economic growth remain.

"Near-term sentiment should continue to be adversely affected by the worsening US-China trade relations, given the current tit-for-tat trade sanctions on the technology-related sector," TA Securities Holdings Bhd wrote in a note today.

At 12:30pm, the KLCI settled at 1,605.54 after KLCI stocks including Petronas Gas Bhd and Petronas Chemicals Group Bhd erased losses on bargain hunting as crude oil prices rebounded. The KLCI settled up after falling to its intraday low at 1,592.97.

Crude oil prices rebounded today after falling some 5% in overnight trades. Reuters reported that oil prices jumped more than 1% on Friday amid OPEC supply cuts and Middle East tensions, but still did not fully recoup losses earlier in the week on economic slowdown jitters and swelling inventories — their steepest drops since the start of the year.

It was reported that Brent crude futures, the international benchmark for oil prices, were at US$68.50 per barrel at 0231 GMT, up 74 cents, or 1.1%, from their last close while US West Texas Intermediate crude futures were up 63 cents, or 1.1%, at US$58.54 per barrel.