KUALA LUMPUR (Sept 26): The FBM KLCI fell 3.55 points or 0.2% after North Korea's statement saying US President Donald Trump has declared war on North Korea, rattled global markets.

Reuters reported North Korean Foreign Minister Ri Yong Ho as saying Trump's Twitter comments, in which the U.S. leader said Ri and leader Kim Jong Un "won't be around much longer" if they acted on their threats, amounted to a declaration of war and that Pyongyang had the right to take countermeasures.

It was reported that the White House disputed the declaration, calling the suggestion "absurd".

In Malaysia, the KLCI closed at 1,765.59 points, after falling to its intraday low at 1,761.21 points.

Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com that the US-North Korea "geopolitical tension" had affected market sentiment.

“(In Malaysia), there is selling pressure on renewed foreign fund outflow," Leong said.

Across Bursa Malaysia, 3.7 billion shares valued at RM2.74 billion exchanged hands. Decliners outpaced gainers at 528 against 282 respectively.

North Korea's statement rattled world share markets. Japan's Nikkei 225 declined 0.33%, while South Korea's Kospi was 0.26% lower.

Asian equities had tracked overnight US stock losses today. The Dow Jones Industrial Average fell 0.24%, S&P 500 declined 0.22%, while Nasdaq was down 0.88%.