KUALA LUMPUR (Dec 4): The FBM KLCI fell 0.39% in early trade Wednesday, extending its losses in line with the slide at most regional markets on lingering worries over a prolonged US-China trade war, dragged by losses including at Petronas-linked stocks.

At 9.11am, the FBM KLCI fell 6.08 points to 1,556.19.

The early decliners included Nestle (M) Bhd, PPB Group Bhd, Petronas Dagangan Bhd, MISC Bhd, Genting Plantations Bhd, Petronas Gas Bhd, Fraser & Neave Holdings Bhd, IOI Corp Bhd, Westports Holdings Bhd and Petronas Chemicals Group Bhd.

Bloomberg reported that the risk-off tone that’s engulfed global markets built on Wednesday as stocks in Asia opened lower in the wake of heightened uncertainty over this month’s upcoming tariff deadline. Treasuries held on to gains after yields tumbled the most since August overnight.

Australia’s main share index fell more than 1.5%, with losses more modest for equities in South Korea and Japan. Earlier, the S&P 500 Index declined for a third day, though it pared some losses into the close. The Trump administration signaled the U.S. plans to move forward with tariffs on Chinese goods if no deal is struck before the mid-December deadline. The president had earlier indicated he’d be willing to wait another year before striking an agreement with China. U.S. futures slipped after the U.S. House voted to sanction Chinese officials for human rights abuses, it said.

JF Apex Securities Research said U.S. equities sank on Tuesday after President Donald Trump suggested he may want to delay a trade deal with China until after the 2020 presidential election.

It  said that similarly, European stocks were sharply lower yesterday after President Donald Trump said that it might be better to wait until after the 2020 election to strike a trade deal with China.

“On the local market, the FBM KLCI lost 8.28 points to 1562.27 points.

“Following the bearish performances in the US and Europe, the FBM KLCI could remain pressured with support at 1550 points,” it said.