KUALA LUMPUR (May 11): The FBM KLCI climbed 8.74 points or 0.53% taking cues from the overnight energy stocks rebound in the US and European markets, bucking the lower close in most of the Asian markets.

The ringgit depreciated further to 4.0413 against the US dollar as the deadline for the bond interest payment for 1Malaysia Development Bhd looms.

The KCLI closed at 1,644.58 points after dropping to an intraday low of 1,639.42. Yesterday, the index rose 3.65 points to close at 1,635.84.

Areca Capital Sdn Bhd chief executive officer Danny Wong said energy stocks supported the higher close today which could be the trend for the rest of the week.

"The Malaysian market followed through the rebound on commodities especially energy prices overnight in the European and US stock exchanges.

"The Malaysian market could retain this same trend for the week but it would (be) not much, maybe there will be nibbling," he said.

Wong added oil and gas stocks could remain attractive in the next two to three months with consumables boosting the sentiment for June and July as the Muslim celebration starts.

Across Bursa Malaysia, there were 467 gainers and 359 decliners. Total volume of shares was 1.67 billion valued at RM1.9 billion.

Reuters wrote that MSCI's broadest index of Asia-Pacific shares outside Japan (MIAPJ0000PUS) was flat after spending most of the morning session in negative territory.

Reflecting the cautious mood in Asia, Reuters said European shares were expected to open broadly steady.

Reuters pointed out that Hong Kong's Hang Seng Index led regional stocks lower with the benchmark index falling 0.8%, followed by South Korea's Kospi, down 0.03%, and Taiwan Stock Exchange Weighted Index losing 0.3%. They are most vulnerable to weakness in the Chinese economy.

Further, it reported that Japanese shares were among the rare bright spots in the region, with the Nikkei rising 0.3% as the yen moved further away from the 18-month highs against the dollar struck last week. Overall sentiment remained cautious.