KUALA LUMPUR (May 4): The FBM KLCI started the month on a poorer note and slumped 2.09% in early trade as weak domestic April manufacturing data coupled with trade tariff overtures by US president Donald Trump against China dragged global markets.

The Malaysian manufacturing sector came under heavy pressure during April as measures implemented to tackle the spread of the coronavirus disease 2019 (COVID-19) caused firms to either suspend production or operate well below full capacity.

The headline IHS Markit Malaysia Manufacturing Purchasing Managers’ Index (PMI) slumped to 31.3 in April from 48.4 in March.

At 9.03am, the FBM KLCI lost 2.09% or 29.41 points to 1,378.37.

The top losers included Petronas Dagangan, Kuala Lumpur Kepong Bhd, Petronas Gas Bhd, PPB Group Bhd, Hong Leong Bank Bhd, Public Bank Bhd, Sime Darby Plantations Bhd, MISC Bhd, Malayan Banking Bhd, RHB Bank Bhd and Hap Seng Consolidated Bhd.

Reuters said The dollar rose, oil fell and stock markets were poised to slip on Monday as rising U.S.-China tensions over the coronavirus - and growing unease at the gulf between asset prices and grim economic reality - turned investors cautious.

In thin trade, with China and Japan on holiday, U.S. stock futures fell 1.6%, U.S. crude tumbled over $1 a barrel, or 6%, and futures for Australia's benchmark ASX 200 index pointed to a negative open, it said.

JF Apex Securities Research said US markets tumbled on Friday after President Trump threatened to impose new tariffs on China over the coronavirus.

It said that meanwhile, major European exchanges were closed for Labour Day holiday but UK stocks declined over the latest conflict between the US and China over the coronavirus.

“On the local market, the FBM KLCI surged 27.48 points to 1407.78 points.

“Following the recent positive momentum, the FBM KLCI could take a breather and hover below the resistance level of 1415 points,” it said.