KUALA LUMPUR (May 8): The FBM KLCI settled down 7.22 points or 0.44% at Bursa Malaysia's afternoon break today as investors evaluated the impact of the US-China trade war on world economic growth.
At 12:30pm, the KLCI settled at 1,632.15. Across Bursa Malaysia, decliners led gainers by 381 to 156 as total volume reached 1.39 billion shares valued at RM981.1 million.
"Pending further solid cues from the US-China trade developments, cautious sentiment should prevail, but the weak ringgit should continue to support strength in export-related counters," TA Securities Holdings Bhd wrote in a note today.
Reuters reported that Asian equities tracked Wall Street's slide on Wednesday, while investors switched to safe-haven government bonds, driven by fears that global growth will suffer as a potential trade deal between the United States and China appeared to be unravelling. It was reported that MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.75%, stooping to its lowest level since late March.
Beijing said on Tuesday that Chinese Vice Premier Liu He will visit Washington on Thursday and Friday for trade talks, setting up a last-ditch bid to salvage a deal that would avoid a sharp increase in tariffs on Chinese goods ordered by US President Donald Trump, according to the newswire.