KUALA LUMPUR (May 29): The FBM KLCI started Wednesday on a lacklustre note, tracking the drop at regional markets.

At 9.05am, the FBM KLCI shed 2.74 points to 1,611.83.

The early decliners included British American Tobacco (M) Bhd, Latitude Tree Holdings Bhd, Petronas Dagangan Bhd, Nestle (M) Bhd, Padini Holdings Bhd, Carlsberg Brewery Malaysia Bhd, Genetec Technology Bhd, YSP Southeast Asia Bhd and Hong Leong Financial Group Bhd.

Stocks in Asia dropped after an afternoon sell-off on Wall Street as investors gauge the warning signals flashing in the bond market, where sovereign yields have slumped to multi-year lows, according to Bloomberg.

Japan’s Topix index opened 1% lower, with losses more modest in Australia and South Korea. Selling in U.S. stocks accelerated late in the session as the rally in 10-year Treasuries further inverted a part of the yield curve watched for its history of signaling recessions. Japanese government bond yields slid deeper into negative territory, and New Zealand’s 10-year rates hit a record low and Australia’s declined below the central bank’s short-term policy rate. The dollar edged higher, and futures on the S&P 500 Index fell, it said.

CIMB Retail Research said tracking the positive performance across Asian markets, the benchmark FBM KLCI closed 13.22 points or 0.83% higher on Tuesday as Trump concluded Japan visit amid hopes of a trade deal.

It said the overall market breadth turned positive yesterday.

“The overnight decline on Wall Street could potentially act as a drag on the local market sentiment today.

“Hence, we maintain our view that a range-bound trading would continue to persist, particularly, amid the ongoing trade tension between US and China and weak corporate earnings trend.

“Resistance: 1,620 & 1,644. Support: 1,600 & 1,572,” it said.