KUALA LUMPUR (Nov 22): The FBM KLCI drifted lower in early trade Friday, extending its loss, dragged including by index-linked banking stocks.

At 9.05am, the FBM KLCI fell 2.68 points to 1,589.51.

The early decliners included Nestle (M) Bhd, Kuala Lumpur Kepong Bhd, Genting Plantations Bhd, Kossan Rubber Industries Bhd, Hong Leong Bank Bhd, Public Bank Bhd and Petron Malaysia Refining & Marketing Bhd.

Reuters reported that Asian equities rose on Friday, bouncing from a three-week low touched a day earlier, but gains were capped by persistent worries over the status of trade negotiations between China and the United States.

Early in the Asian trading day, MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.12%. The index had fallen as much as 1.41% on Thursday, hitting its lowest level since October 30, on concerns that U.S. legislation on Hong Kong threatened to undermine trade talks between the world's two largest economies, it said.

JF Apex Securities Research said US stocks slipped on Thursday as investors digested the latest reports surrounding the U.S.-China trade war.

It said that similarly, European stocks closed lower as Sino-U.S. relations came under strain over Hong Kong, fueling concerns a “phase one” trade deal between the two powerhouses may be pushed into next year.

“The FBM KLCI tumbled 8.95 points or 0.56% to 1592.19 points yesterday.

“Following the lackluster performances in the US and European markets, the local benchmark index could remain range bound, hovering between the support level of 1570 points and resistance level of 1615 points in the immediate term,” it said.