KUALA LUMPUR (March 24): The FBM KLCI fell 9.02 points or 0.5% as Asian shares posted losses on US interest rate rise anticipation. Such sentiment resulted in a stronger US dollar, which in turn led to lower crude oil prices.

At 5pm, the KLCI closed at 1,715.53 points after falling to its lowest point today at 1,710.87.

Japan's Nikkei 225 lost 0.64%. In China, Hong Kong's Hang Seng declined 1.31% while the Shanghai Composite fell 1.63%.

Asian markets could have also taken the cue from China share losses after stockbroking firms there resumed short-selling operations.

Reuters reported that China stocks fell more than 1% on Thursday, led by resources shares, after state media reported that 35 domestic brokerages have resumed short-selling business following a long hiatus.

Reuters also reported that the dollar advanced for a fifth straight session on Thursday, pressuring commodities and Asian shares after yet another Federal Reserve official talked up the chance of more than one increase in US interest rates this year.

US crude futures were down 55 US cents at US$39.24 a barrel at 0757 GMT, trading further below the important US$40 level after US stockpiles rose for the sixth week to another record.

In Malaysia, Affin Hwang Investment Bank Bhd head of retail research Datuk Dr Nazri Khan told theedgemarkets.com the KLCI had seen an overbought correction.

Nazri said Affin Hwang expected the correction to continue in the next few days.

He, however, said the KLCI was undergoing a "temporary correction" as the combination of US monetary tightening talk and lower crude oil prices led to profit taking.

At Bursa Malaysia, decliners outnumbered gainers at 513 to 318. A total of 1.69 billion shares worth RM1.88 billion changed hands.

Top decliners were KLCI entities Hong Leong Financial Group Bhd and Genting Bhd.

Panasonic Manufacturing Malaysia Bhd was the top gainer while Eka Noodles Bhd was the most-actively traded stock.