KUALA LUMPUR (Jan 28): Malaysian markets may take the cue from the Budget 2016 revision announcement today as policy makers take into account cheaper crude oil's impact on government income.

Crude oil forms a crucial component of the Malaysian economy and government revenue. As such, investors may evaluate the impact of the revised budget on certain sectors.

Investors may also be eager to know if the government will revise the country's economic growth and budget deficit targets.

Prime Minister Datuk Seri Najib Tun Razak had earlier said Malaysia was not spared from current economic challenges amid lower crude oil prices, which would have an impact on the country's income.  

He said crude oil at below US$30 a barrel had prompted countries to reassess their economic growth forecast.

Yesterday, the FBM KLCI rose 4.88 points or 0.3% to close at 1,631.54.

Overnight in the US, the Dow Jones Industrial Average fell 1.38%, S&P 500 declined 1.09% while Nasdaq Composite was 2.18% lower.

Reuters reported that Wall Street dropped sharply on Wednesday after the US Federal Reserve frustrated stock investors hoping for a strong sign it might scale back future interest rate hikes because of recent financial and economic turmoil.

In a widely expected decision, the Fed kept interest rates unchanged and it said it was "closely monitoring" global economic and financial developments, but it maintained an otherwise upbeat view of the US economy.