KUALA LUMPUR (Feb 7): The FBM KLCI settled down 3.67 points or 0.24% at 1,549.10 at Bursa Malaysia's afternoon break today as news on the higher death toll in Mainland China from the 2019 novel coronavirus (2019-nCoV) outbreak affected world market sentiment.

A total of 636 people had died in Mainland China as of yesterday (Feb 6) from 2019-nCoV after 73 new deaths were reported across the country, the Chinese government said.

Across Bursa at 12:30pm, 1.37 billion shares worth RM861.42 million were traded. Top decliners included KLCI stocks PPB Group Bhd and Tenaga Nasional Bhd.

Despite the KLCI's drop, analysts appeared optimistic on the index after US stock indices closed up overnight at record highs on factors including China's decision to halve additional tariffs levied against some US goods.

Hong Leong Investment Bank Bhd said in a note: "Taking cues from the overnight record-setting on the (US) Dow, KLCI is expected to hold onto moderate gains today, on optimism from China's recent stimulus measures and the easing pressures on US-China trade tension after China announced [it will] cut in half tariffs on some US$75 billion of US imports."

"Technically, a decisive breakout above the 1,558-1,568 gap (Jan 28) will lift index higher towards 1,580-1,600 zones," Hong Leong said.

Asian stock markets fell. Reuters reported that Asian share markets slipped on Friday and oil price gains stalled, as the growing death toll and economic damage from the 2019-nCoV outbreak put a lid on the week's sharp rally. It was reported that the toll in Mainland China from the new virus rose to 636, more than doubling in just under a week.

"In the early hours of the morning, one of the first Chinese doctors to raise the alarm about the virus died from the illness at a hospital in Wuhan, the outbreak's epicentre. MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.7%," the newswire reported.