KLCI cuts losses as Asian shares rise on US-China trade deal hope

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KUALA LUMPUR (Dec 6): The FBM KLCI opened down today before cutting losses as Asian shares rose on US-China trade deal expectations. Reuters reported today that US President Donald Trump said on Thursday that US-China trade talks are "moving right along." 

It was reported that Trump's statement strucked an upbeat tone despite a lack of agreement over whether existing tariffs should be dropped as part of a deal.

"Asian stocks held firm on Friday as Trump's rhetoric kept investors' hopes up on a trade deal with China, while oil sat near two-month highs after producers led by Saudi Arabia and Russia agreed on further output cuts," Reuters reported.

At Bursa Malaysa today, the KLCI opened down 1.49 points at 1,562.09 at 9am. At 9:07am, the KLCI fell 0.49 point to 1,563.09 as index-linked stocks including Hong Leong Bank Bhd and IHH Healthcare Bhd emerged among Bursa top decliners.
 
"As the KLCI had stabilised over the past few days, in tandem with the global stock markets, coupled with the recovering sentiment in the broader market (positive market breadth yesterday) and gradual recovering technical indicators, we expect window-dressing activities to continue until end of December. 

"The KLCI could trade within the range of 1,550 -1,600 in the near term," Hong Leong Investment Bank Bhd wrote in a note today.