KUALA LUMPUR (Feb 6): The FBM KLCI opened higher today before extending gains with Asian shares after US equity indices S&P 500 and Nasdaq rose overnight to close at a record high on encouraging US economic data. World stocks rose despite cautious sentiment on the China coronavirus outbreak. 

At Bursa Malaysia today, the KLCI rose 6.96 points to 1,543.75 at 9:01am before climbing 8.64 points to 1,545.43 at 9:08am. Across Bursa, top gainers included 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 virus 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.

Globally, Reuters reported that Asian stocks edged up on Thursday, a day after U.S. S&P 500 hit a record peak following encouraging economic data, while investors keep a wary eye on the impact of the coronavirus outbreak.

It was reported that MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.39% while Japan's Nikkei rose 1.63%.

"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 U.S. services sector activity picked up last month. Both indicators suggest the economy could continue to grow moderately this year even as consumer spending slows.

"Traders also cited unconfirmed reports of a possible vaccine breakthrough for the coronavirus as a trigger for Wednesday's stock rally, although they also said such a catalyst was also likely to be an excuse for short-covering," Reuters reported.