KUALA LUMPUR (Feb 6): The FBM KLCI settled up 0.69% at Bursa Malaysia's afternoon break today as Asian shares tracked US equity indices S&P 500 and Nasdaq's overnight rise to record closes on encouraging US economic data. World stocks rose despite cautious sentiment on the 2019 novel coronavirus (2019-nCoV) outbreak.

At 12:30pm, the KLCI gained 10.66 points to 1,547.45 after rising to its highest so far today at 1,552.23.

Across Bursa, 1.66 billion shares worth RM998.8 million were traded. Top gainers included KESM Industries Bhd besides KLCI stocks Public Bank Bhd and MISC Bhd.

"The overnight rally on Wall Street should revive the local market today, but undertone remains cautious pending further clarity on the virus contagion," TA Securities Holdings Bhd wrote in a note today.

MIDF Amanah Investment Bank Bhd strategy head Kifni Kamaruddin wrote in a note today that the additional region-wide financial liquidity from further rate cuts by People's Bank of China, in particular, may lend downside support to stock markets amid the 2019-nCoV outbreak.

"Looking further forward into the second half of this year, we reckon the additional financial liquidity would continue to propel the regional equity markets higher with the local benchmark KLCI scaling towards our 2020 baseline target.

"At this juncture, pending further insights over the coronavirus epidemic, we reiterate our year-end 2020 baseline target for the KLCI at 1,680 points," Kifni said.

Reuters reported that Asian stocks edged up on Thursday, cheered by record closes in Wall Street benchmarks after encouraging economic data, although investors kept a wary eye on the developments in the 2019-nCoV outbreak.

It was reported that MSCI's broadest index of Asia-Pacific shares outside Japan gained 1.14%.

"On Wednesday, the S&P 500 gained 1.13% to a record close of 3,334.69 while the Nasdaq added 0.43% to 9,508.68, also a record high.

"The ADP National Employment Report showed private payrolls jumped 291,000 jobs in January, the most since May 2015, while a separate report showed US services sector activity picked up last month. Both indicators suggest the economy could continue to grow moderately this year even as consumer spending slows," the newswire said.