KLCI lower as Trump-Kim summit collapses, China reports worst PMI in three years

-A +A

KUALA LUMPUR (Feb 28): The FBM KLCI fell 5.72 points or 0.33% to close at 1,707.73 as slimmer trade resolution hopes and weaker Chinese factory data dampened global investor sentiment. News that the US-North Korean summit in Hanoi collapsed with no agreement reached had also affected world market dynamics.  

Across Asian stock markets, Japan’s Nikkei 225 closed 0.79% lower while South Korea’s Kospi was down 1.76%. In China, the Shanghai Stock Exchange Composite fell 0.44% while Hong Kong's Hang Seng lost 0.43%.

In Malaysia, Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com the market weakness today was mainly attributable to US President Donald Trump and North Korean leader Kim Jong Un's summit, which was cut short with no agreement reached.

“Besides, the weak China factory data also contributed to the weakness today, after its Purchasing Managers' Index shrank to a three-year low at 49.2 (in February 2019),” Leong said.

Reuters reported that Asian stocks fell on Thursday as investors dialled back some of their recent optimism about a China-US trade deal while news that the US-North Korean summit in Hanoi ended early rattled confidence late in the trading day.

It was reported tha US Trade Representative Robert Lighthizer said on Wednesday it was too early to predict an outcome in talks between Washington and Beijing.

It was reported that Lighthizer told US lawmakers that US issues with China are "too serious" to be resolved with promises from Beijing to purchase more US goods and any deal between the two countries must include a way to ensure commitments are met.

On the US-North Korean summit, it was reported that the White House said today Trump and Kim did not reach an agreement at the end of two days of meetings but had constructive discussions on denuclearisation.

Across Bursa Malaysia today, 2.57 billion shares worth RM2.97 billion were traded. Top decliners included Nestle (M) Bhd and AirAsia Group Bhd.

AirAsia Group, which also ended among top-active stocks, closed 27 sen down at RM2.77. The stock saw some 75 million shares traded.