KUALA LUMPUR (Dec 16): The FBM KLCI drifted lower in early trade Monday, against the backdrop of mixed regional markets, dragged by losses including at Petronas-linked stocks Tenaga Nasional Bhd.

At 9.10am, the FBM KLCI dipped 2.20 points to 1,568.96.

The early decliners included Nestle (M) Bhd, Kuala Lumpur Kepong Bhd, Petronas Gas Bhd, Petronas Dagangan Bhd, Hong Leong Bank Bhd, Scientex Bhd, Hap Seng Consolidated Bhd, Tenaga and Malaysia Airports Holdings Bhd.

Bloomberg reported Asian stocks look set to start the week mixed after a partial U.S.-China trade deal yielded few details. The Australian dollar and the offshore yuan were firmer as China avoided extra tariffs.

Futures on Japanese and Hong Kong equities dipped. Australian contracts were higher. Washington and Beijing agreed to a first phase of a broader trade deal on Friday that will see China boost imports, including of American agricultural products, and the U.S. halving duties on $120 billion of Chinese goods. The U.S. has also delayed levies that were due to be imposed on Sunday, and China said it will suspend additional tariffs on certain American imports, it said.

JF Apex Securities Research said US markets were flat on Friday after China and the US agreed on phase one of the trade deal.

It said European stocks were positive on the trade agreement as well as UK's election result.

“On the local market, the FBM KLCI gained 3.82 points to 1571.16 points.

“Following the positive sentiment from the trade deal, the FBM KLCI could extend its rebound towards the resistance of 1580 points,” it said.