KUALA LUMPUR (Sept 5): The FBM KLCI rose in anticipation that US policy makers will postpone interest rate hikes after August employment numbers grew at a slower on-month rate. The growth rate was below market forecast.

At 9:13am, the KLCI rose 0.21 point to 1,672 points after falling 2.27 points to 1,669.52 points at 9:08am.

The US employment data is deemed a crucial indicator of the country's interest rate direction, which could affect world markets. Higher US interest rates do not bode well for emerging Asian markets in anticipation that investors will shift their funds back to US dollar-based assets.

News reports, quoting the US Labour Department, indicated that non-farm payrolls increased by 151,000 in August compared to a Reuters economist forecast of a 180,000 rise. The department revised its July growth rate higher at 275,000 jobs.

Malaysian shares rose with Asian equities. Reuters reported that Asian shares rose on Monday, getting a tailwind from gains on Wall Street after a weaker-than-expected US jobs report prompted markets to trim expectations that the Federal Reserve would hike interest rates as early as this month.

MSCI's broadest index of Asia-Pacific shares outside Japan was 0.5% higher in early trade. Japan's Nikkei stock index surged 1% to three-month highs.

In Malaysia, Hong Leong Investment Bank Bhd wrote in a note today that the KLCI was expected to take the cue from crude oil and US share prices.

"Given a rebound in Brent oil prices and Dow last Friday as bets of a 2nd Fed rate hike in Sept was pushed off slightly, KLCI may experience another technical rebound today," Hong Leong said.

Across Bursa Malaysia, there were some 108 million shares worth RM42 million traded. There were 150 gainers and 89 decliners.

Top gainer and decliner was Nestle (M) Bhd and Petronas Dagangan Bhd respectively. The most-active stock was Vivocom Intl Holdings Bhd.