KUALA LUMPUR (Aug 2): The FBM KLCI closed 12.31 points or 0.75% lower at 1,626.76 today amid broad-based selling across Bursa Malaysia after US President Donald Trump said the US will impose a 10% tariff on the remaining US$300 billion of Chinese imports.

Trump said via Twitter that the 10% tariff does not include the RM250 billion worth of Chinese goods already tariffed at 25%. Trump's latest statement on the US-China trade war led to a fall in global stock and commodity markets in anticipation that the dispute will intensify.  

Nomura head of equity research for Malaysia Tushar Mohata told theedgemarkets.com: "Currently, macro factors are driving the markets. Things are changing dynamically right now, and evidently, after Trump's announcement last night, global uncertainties have increased even further."

At 5pm today, the KLCI pared losses after falling to its intraday low at 1,623.66. Bursa's index for small market capitalisation stocks closed down 178.65 points or 1.32% at 13,374.39 after Asian stock indices ended lower.

In China, the Shanghai Stock Exchange Composite closed down 1.41% while Hong Kong's Hang Seng fell 2.35%. Elsewhere, Japan's Nikkei 225 dropped 2.11% while South Korea's Kospi was down 0.95%.

Reuters reported that global stocks took a beating on Friday, with investors piling into safe-haven assets but oil prices recouped some losses after Trump said he would slap a 10% tariff on the remaining US$300 billion of Chinese imports starting Sept 1.

On Bursa Malaysia today, decliners outpaced gainers by 582 to 212. Volume was 2.22 billion shares valued at RM1.76 billion.

Top decliners included Nestle (M) Bhd, Maxis Bhd and Bursa Malaysia Bhd. Leading active stocks included KNM Group Bhd and Ekovest Bhd.