KUALA LUMPUR (Sept 4): The FBM KLCI opened higher today on bargain hunting after a substantial drop yesterday and after the ringgit strengthened.

At 9am today, the KLCI opened up 2.34 points or 0.15% at 1,593.86. At 9:07am the index rose 2.63 points to 1,594.15. In currency markets earlier, the ringgit strengthened to 4.2165 against the US dolllar at 8:59am.

Yesterday, the KLCI closed down 20.62 points or 1.28% at 1,591.52 amid US-China trade war concerns and after taking into account subdued Malaysian corporate earnings for the April-to-June quarter.

Today, Affin Hwang Investment Bank Bhd's research team wrote in a note the firm had cut its KLCI 2019 year-end target to 1,650 from 1,679 after reducing its 2019 KLCI EPS on-year growth forecast to 0.2% from 1% previously.

"On the surface, the 2Q19 reporting season seemed better with more companies beating expectations. However, there was also a corresponding increase in disappointments which resulted in a further cut to our 2019E KLCI EPS growth, which is now down to +0.2% yoy (from +1% previously)," the research team said.

Globally, Bloomberg reported earlier today Asian stocks were set for a cautious start Wednesday after declines in US equities and Treasury yields following a weak American manufacturing report and amid an impasse in the trade war.

It was reported that futures pointed lower in Japan and Australia, while Hong Kong contracts were flat. Technology shares underperformed after Huawei Technologies accused the US government of harassing workers and attacking its internal network. The 10-year Treasury yield slid and the dollar dropped, according to Bloomberg.