KUALA LUMPUR (Dec 5): The FBM KLCI fell 0.55% in early trade this morning, taking cue from regional markets following the overnight slump at Wall Street.

At 9.05am, the FBM KLCI lost 9.23 points to 1,685.76.

The early losers included Fraser & Neave Holdings Bhd, KESM Industries Bhd, Malaysian Pacific Industries Bhd, British American Tobacco (M) Bhd, UMW Holdings Bhd, Ajinomoto (M) Bhd, Genetec Technology Bhd, Petron Malaysia Refining & Marketing Bhd and Nestle (M) Bhd.

Asian stocks fell on Wednesday, dragged by Wall Street's tumble as sharp declines in long-term U.S. Treasury yields and resurgent trade concerns stoked investor worries about global economic growth, according to Reuters.

Global equities have been shaken as a flattening U.S. Treasury yield curve - a result of a steep fall in longer-dated yields - fanned recession jitters and as U.S.-China trade conflict woes resurfaced after a temporary lull, it said.

Hong Leong IB Research in a traders’ brief said in the US, following the recent trade discussions between US and China, investors are still having a cautious tone as vague and conflicting messages from the White House economic advisers have dampened the optimism on the fresh breakthrough.

“Also, without any clear statement or strategy from President Xi Jinping, market tone will remain uncertain over the near term. Hence, the Dow’s downside risk will persist at least for the near term.

“Selling pressure is likely to spill over on the local front and the FBM KLCI could face further weakness below the stiff resistance along 1,700 psychological level.

“Hence, traders may look into defensive utilities and high dividend yield sectors for the time being. Meanwhile, O&G stocks will remain volatile with the fluctuations of Brent oil prices ahead of the OPEC meeting,” it said.