KUALA LUMPUR (Nov 9): The FBM KLCI fell 2.91 points or 0.2% while the ringgit weakened following optimistic US employment data, which lends credence to a potential US interest rate hike in December this year.

 
Higher US interest rates do not bode well for Asian markets as investors turn their attention to US dollar-denominated assets.  

In Malaysia today, the KLCI fell to 1,682.79 at 9am. At 9:16am, Bursa Malaysia saw some 272 million shares worth RM122 million changed hands. There were 229 gainers versus 142 decliners.

Top gainer was Petronas Gas Bhd while Kuala Lumpur Kepong Bhd led decliners.
Most active was The Media Shoppe Bhd.

At 9:41am, the KLCI was traded at 1,682.87. At 9:50am, the ringgit weakened to 4.3665 against a strengthening US dollar.

Across Asian share markets, South Korea's Kospi fell 0.42% while Australia's S&P/ASX 200 was down 0.8%. Japan's Nikkei 225, however, rose 1.45%.

Reuters reported that Asian stocks slipped and the dollar stood at a seven-month high against its peers early on Monday after robust US jobs data bolstered expectations of a Federal Reserve interest rate hike in December.

Data on Friday showed non-farm payrolls increased 271,000 in October, the largest gain since last December. The unemployment rate fell to 5%, the lowest since April 2008.

In Malaysia, M&A Securities Sdn Bhd research head Rosnani Rasul said current US rate hike sentiment "may pound major oil producing countries' equity markets as oil price may dip while their currencies may weaken as a result."

"More worryingly, once the US starts the adjustment, we think that the trend may continue well into 2016 although the caveat is that the adjustment is data dependent," Rosnani said.