KUALA LUMPUR (Oct 29): The FBM KLCI rose 0.18% at the afternoon break today, taking a cue from the optimism following comments by US and China officials that both parties had made progress on certain issues.

At 12.30pm today, the benchmark index settled 2.79 points higher at 1,572.79 points, after touching an intra-morning high of 1,574.18.

Top gainers on the bourse were led by Hong Leong Financial Group Bhd, Carlsberg Brewery Malaysia Bhd and British American Tobacco (Malaysia) Bhd, while the decliners were led by Ayer Holdings Bhd.

In a note to investors today, Hong Leong Investment Bank Bhd head of retail research Loui Low Ley Yee said the positive sentiment on trade, which had lifted global markets, may spill over to local equities.

"With the healthy progress on the trade front lifting the S&P500 towards a record high, we expect the buying sentiment may spill over towards stocks on the local bourse. The KLCI could trade higher following the sideway consolidation phase to retest the resistance along 1,580, followed by 1,600.

"Also, we anticipate technology stocks on the local front to benefit from the positive trading tone on the tech giants in the US," said Low.

Reuters said Asian shares rose to a three-month peak on Tuesday after Wall Street hit all-time highs amid hopes of progress in Sino-US trade talks and for another dose of policy stimulus from the US Federal Reserve this week.

MSCI's broadest index of Asia-Pacific shares outside Japan crept up 0.2% to its highest since late July, it said.

US President Donald Trump was reported as saying that a significant part of the trade deal with China is expected to be signed ahead of schedule. Leaders of both nations are expected to sign the deal at a summit in Chile next month.