KUALA LUMPUR (Aug 14): The FBM KLCI rebounded today in line with the recovery across regional markets after the United States said it is delaying imposing tariffs on some Chinese imports until Dec 15.

The benchmark index closed 7.43 points higher to 1,600.31,  barely surpassing the crucial 1,600 level. Gainers outdid losers by 424 to 296 in the broader market, with 2.41 billion shares traded for RM1.65 billion.

Malacca Securities Sdn Bhd senior analyst Kenneth Leong said that despite the market's positive performance today, the general trend is still on the weak side.

“The index would have to reach the 1,620 level before we can say it has recovered. Moving forward, investors should watch out for corporate earnings, which has already started being reported and will continue next week. That would dictate market movement,” he told theedgemarkets.com.

Leong expects the market to trade sideways for the rest of the week.

Regionally, indices pared gains. Hong Kong’s main Hang Seng index closed 0.08% higher, while the Shanghai composite index rose 0.42%. Japan's Nikkei 225 ended 0.98% higher and South Korea’s KOSPI closed up 0.65%.

US President Donald Trump backed off from his Sept 1 deadline for 10% tariffs on all Chinese goods not yet subject to them, delaying duties on cellphones, laptops and other consumer goods, in the hopes of blunting their impact on US holiday sales, said Reuters.  

While the White House’s announcement on the tariff delay prompted a relief rally on Asian markets, some analysts suspect this might be short-lived, the report said.