KUALA LUMPUR (Dec 4): The FBM KLCI fell 3.25 points or 0.2% as Asian shares tracked overnight US equity losses.

At 9:03am, the KLCI was traded at 1,670.67. Across Asia, Japan's Nikkei 225 fell 1.74% while South Korea's Kospi dropped 0.69%.

In the US, the Dow Jones Industrial Average declined 1.42%, S&P 500 fell 1.44% while Nasdaq Composite was 1.67% lower.

In Malaysia today, analysts sensed cautious sentiment following US share losses as investors anticipated the first US interest rate hike in about seven years from near-zero levels.

US policy makers will meet this Dec 15 and 16 to decide on the country's monetary policy. A US rate hike does not bode well for emerging Asian markets like Malaysia as investors turn their attention to US dollar-denominated assets.

TA Securities Holdings Bhd wrote in a note today: "Disappointment over the ECB's (European Central Bank) stimulus plan and US stocks correction overnight on higher likelihood for interest rate rise this month, and caution ahead of OPEC's meeting tonight should keep local investors on edge and discourage commitments."

OPEC stands for Organization of the Petroleum Exporting Countries.

Bursa Malaysia saw some 59 million shares worth RM16 million changed hands. There were 69 gainers versus 124 decliners.

Top gainer was Petronas Dagangan Bhd while Lingkaran Trans Kota Holdings Bhd led decliners.

The most-active stock included Wintoni Group Bhd and Instacom Group Bhd.

In currency markets, the ringgit strengthened against the US dollar at 4.2203. The ringgit's strength could have been underpinned by higher prices of crude oil, which constitutes a major portion of the Malaysian economy and government revenue.

Reuters reported that crude prices settled up about 3% on Thursday, the eve of an OPEC meeting, as traders who expect no cuts in the group's output hedged their positions in case of a surprise outcome at a meeting of the world's largest oil producers.

Brent crude oil rose US$1.35 or 3.2% to US$43.84 a barrel while US oil climbed US$1.14 or 2.9% to US$41.08. 

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