KUALA LUMPUR (Nov 3): Malaysian shares are expected to take the cue from overnight US share gains as investors evaluate the impact of lower crude oil prices.

The onset of the Malaysia's corporate financial reporting season this month is also anticipated to influence share-trade sentiment here.

Yesterday, the FBM KLCI fell 1.64 points or 0.1% to 1,664.07 following the announcement of China's manufacturing data. China's Oct purchasing managers index, which stood at 49.8, fuelled worries on the country’s economic momentum.

A reading below 50 points indicates a contraction.

Overnight, US shares rose while crude oil prices fell. The Dow Jones Industrial Average climbed 0.94% while S&P 500 added 1.19%. Nasdaq Composite was 1.45% higher.

Reuters reported that oil prices fell on Monday after soft Chinese factory data raised worries about energy demand in the No. 2 economy, while record-high Russian crude output suggested little easing in the global supply glut.

Brent, the global crude benchmark, settled down 77 cents, or 1.6%, at US$48.79 a barrel. US crude futures closed down 45 cents or 1%, at US$46.14.

In Malaysia, AllianceDBS Research Sdn Bhd analyst Teoh Chang Yeow wrote in a note the research firm saw the KLCI's immediate support at between 1,647 and 1,657.

"The minority well-informed market participants were still seen focusing on the possible influences of buying and selling relationship in an attempt to determine where the market is likely to turn up, because they did not want to trade the market with emotions and only to find themselves stuck later," Teoh said.