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Malaysia Stock Market Tipped To Halt Losing Streak

The Malaysia stock market has finished lower in wo straight sessions, sinking almost 25 points or 1.4 percent along the way. The Kuala Lumpur Composite Index now rests just above the 1,590-point plateau although it's expected to find support on Wednesday.

The global forecast for the Asian markets is broadly positive on an improved outlook for trade between the United States and China, and the resulting surge in crude oil prices. The European and U.S. markets were firmly higher and the Asian bourses are expected to open in similar fashion.

The KLCI finished sharply lower on Tuesday following losses from the financial shares, plantation stocks and industrial issues.

For the day, the index dropped 22.17 points or 1.37 percent to finish at 1,592.88 after trading between 1,591.29 and 1,615.24. Volume was 2.2 billion shares worth 1.7 billion ringgit. There were 744 decliners and 173 gainers.

Among the actives, Public Bank plummeted 3.62 percent, while Genting Malaysia plunged 3.11 percent, Genting tumbled 2.26 percent, Petronas Chemicals skidded 2.03 percent, Sime Darby retreated 1.83 percent, Tenaga Nasional declined 1.59 percent, Sime Darby Plantations dropped 1.50 percent, IHH Healthcare sank 1.22 percent, RHB Capital shed 0.89 percent, CIMB Group lost 0.79 percent, Digi.com fell 0.60 percent, Dialog Group slid 0.59 percent, IOI Corporation and Maybank both dipped 0.47 percent and PPB Group was unchanged.

The lead from Wall Street is firmly upbeat as stocks moved higher early Tuesday and only got stronger as the day progressed.

The Dow climbed 372.54 points or 1.44 percent to 26,279.91, while the NASDAQ surged 152.95 points or 1.95 percent to 8,016.36 and the S&P 500 jumped 42.57 points or 1.48 percent to 2,926.32.

The rally on Wall Street came after U.S. Trade Representative Robert Lighthizer offered a temporary reprieve in the U.S.-China trade war by announcing a delay in imposing new tariffs on certain Chinese products. Lighthizer said the 10 percent tariff set to take effect on September 1 will be delayed until December 15 for certain products.

The announcement comes less than two weeks after President Donald Trump announced plans to impose a 10 percent tariff on the remaining $300 billion worth of Chinese imports, sparking a sell-off on Wall Street.

In U.S. economic news, the Labor Department said consumer prices rose in line with estimates in July, although the report also showed another bigger than expected increase in core consumer prices.

Crude oil prices shook off early weakness and posted a modest recovery on Tuesday following news of the delay in tariffs. West Texas Intermediate climbed $2.42 or 4.42 percent to $57.20 after the trade announcement after moving as low as $54.78 earlier in the day.

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