KUALA LUMPUR (May 15): The FBM KLCI rebounded after a straight week of losses, following US President Donald Trump's positive comments on the US-Sino trade war, which buoyed investor sentiments globally.
The benchmark index rose 12.24 points to close at 1,611.43 points today.
"We saw a nice rebound today, which I've been expecting. This one could hold for at least a month," said Inter-Pacific head of research Pong Teng Siew.
He suggested that there could still be a 50- to 60-point upside for the KLCI ahead of the G-20 meeting next month, where Trump and Chinese leader Xi Jinping are slated to meet amid ongoing trade negotiations.
On top of that, Malaysian stocks have fallen to their support level in valuation terms, Pong told theedgemarkets.com.
Across Asia, stocks rebounded from multi-month lows as softening rhetoric from Trump eased trade fears, Reuters reported, following an overnight bounce on Wall Street.
MSCI's broadest index of Asia Pacific shares outside Japan climbed 0.6% after falling to its lowest level yesterday since end-January, it wrote, after Beijing imposed a tariff hike on US goods on Monday in response to Washington's move last week to hike levies on Chinese imports.
But on Tuesday, Trump told reporters he had a "very good" dialogue with China, and insisted that talks between the two economic giants had not collapsed.
Today, Japan's Nikkei closed up 0.58% while China's CSI300 climbed 2.25%.