KUALA LUMPUR (Sept 4): Malaysian shares tracked Asian equity losses ahead of the US' crucial employment data, which will offer clues on the timing of interest rate hikes there.

Bloomberg reported that Asian stocks swung back to losses, extending a seventh-straight weekly slump ahead of US payrolls data expected to either make or break the case for an interest-rate rise this month.

Malaysia's FBM KLCI fell 6.58 points or 0.4% at 9:15am to 1,596.17. Across Asia, Japan's Nikkei 225 declined 0.83% while South Korea's Kospi was 0.47% lower.

Hong Kong's Hang Seng resumes trading while the Shanghai Composite extends its break. China markets were closed for holiday yesterday.

In Malaysia today, TA Securities Holdings Bhd wrote in a note that "stocks are likely to trade sideways ahead of the weekend, as investors await the closely-watched US monthly jobs data tonight for clues on whether the Federal Reserve should lean towards hiking interest rates for the first time in nine years."

Bursa Malaysia saw some 191 million shares worth RM78 million changed hands. There were 108 gainers versus 153 decliners.

The top gainer was British American Tobacco (M) Bhd while Hong Leong Financial Group Bhd led decliners. IFCA MSC Bhd was the most-active stock.

In currency markets, the ringgit weakened against the US dollar at 4.2592. Compared to the Singapore dollar, the ringgit depreciated to 3.0060.

The ringgit may hog the spotlight ahead of Bank Negara Malaysia's announcement today on its international reserves. The global reserves will offer clues on how much ammunition the central bank has to support the ringgit against external and domestic factors.

These external factors include the impact of China's yuan devaluation, timing of US interest rate hikes and crude oil prices. Malaysia's external trade updates at noon today will provide a glimpse on the economy amid lower crude oil prices.