KUALA LUMPUR (Dec 18): The FBM KLCI closed 6.31 points or 0.38% lower with Asian shares today after US stocks' overnight drop. World markets fell on global economic growth concerns and as traders braced for the US's interest rate decision.

At Bursa Malaysia, the KLCI closed at 1,635.31 at 5pm. Across Asian stock markets. Japan's Nikkei 225 fell 1.82% while South Korea's Kospi lost 0.43%. In China, Hong Kong's Hang Seng dropped 1.05% while the Shanghai Stock Exchange Composite declined 0.82%.

Overnight in the US, the Dow Jones Industrial Average dropped 2.11%, S&P 500 declined 2.08% while the Nasdaq Composite fell 2.27%.

Reuters reported that Asian share markets sank on Tuesday as heightened worries about a slowing global economy sent Wall Street stocks skidding to their lowest levels in more than a year. It was reported that the US Federal Reserve (Fed) is widely expected to raise interest rates on Wednesday, which would be its fourth hike this year. But many investors now expect signs of economic turbulence to prompt the Fed to signal a slowdown in the pace of tightening next year.

In Malaysia today, Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com the "KLCI's performance is in line with the negative performance of regional stock markets amid US rate hike expectation". Leong said lower crude oil prices also "negatively impacted the KLCI's performance".

Reuters reported that oil prices fell 4% on Tuesday, dropping for a third consecutive session as reports of swelling inventories and forecasts of record US and Russian output combined with a sharp sell-off in global stock markets. It was reported that US crude oil fell US$2.04, or 4.1%, to a low of US$47.84, its weakest since September 2017, before recovering to around US$48.10 by 0920 GMT. North Sea Brent crude fell US$2.41, or 4%, to a low of US$57.20, a 14-month low, and last traded around US$57.61, down US$2.

Across Bursa Malaysia today, 2.27 billion shares worth RM1.91 billion were traded.

The most-active stocks included oil and gas-related companies Bumi Armada Bhd and Hibiscus Petroleum Bhd.

Hibiscus shares fell 14 sen to close at 86 sen with some six million shares transacted.