KUALA LUMPUR (May 10): The FBM KLCI rose 3.65 points or 0.2% with Japan shares, as investors bargain-hunted for beaten-down Malaysian stocks.

At 5pm, the KLCI closed at 1,635.84 points, while Japan's Nikkei 225 rose 2.15%. Japan shares rose, after policy makers said they would intervene to weaken the yen. A weaker yen augurs well for Japanese exporters.

In Malaysia, the KLCI ended higher, after falling to an intraday low at 1,614.4 points. Yesterday, the index fell 17.17 points to close at 1,632.19.

Reuters reported Finance Minister Taro Aso on Monday, in the wake of the yen's surge, said Tokyo is ready to intervene to weaken the currency, if moves are volatile enough to hurt the country's trade and economy. Aso reiterated the message on Tuesday.

Noting the yen's fresh weakness, investors flocked to Japanese stocks, though likelihood of weak first-quarter earnings kept broader sentiment in check.

In Malaysia, Areca Capital Sdn Bhd chief executive officer Danny Wong said in the short-term, the market was expected to remain choppy, as U.S. interest rates and China's economy continued to hold court.

“For the long-term outlook, investors could look at banking, construction, oil and gas, and IT-related stocks,” Wong told theedgemarkets.com.

KLCI component MISC Bhd shares were closely watched. Yesterday, shipping entity MISC's shares fell RM1.09 or 13% to close at RM7.25.

Today, MISC shares fell to their intraday low at RM6.88, before investors bargain hunted for the stock. MISC closed 35 sen or 5% higher at RM7.60, to become Bursa Malaysia's fifth largest gainer.

Across Bursa Malaysia, there were 427 gainers and 362 decliners. Total volume was 1.62 billion shares, valued at RM2.05 billion.

Top gainer was Nestle (M) Bhd, while Panasonic Manufacturing Malaysia Bhd led decliners. The most active stocks included AirAsia X Bhd and Vivocom Intl Holdings Bhd.