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Mild Rebound Tipped For Malaysia Stock Market

The Malaysia stock market on Wednesday snapped the two-day winning streak in which it had added just 4 points or 0.1 percent. The Kuala Lumpur Composite Index now rests just above the 1,785-point plateau although it may bounce higher again on Thursday.

The global forecast for the Asian markets is cautiously optimistic thanks to a spike in crude oil prices. The European markets were slightly higher and the U.S. bourses were mixed but little changed - and the Asian markets figure to split the difference.

The KLCI finished modestly lower on Wednesday following losses from the financial shares and plantation stocks.

For the day, the index lost 13.92 points or 0.77 percent to finish at 1,785.25 after trading between 1,780.91 and 1,822.68. Volume was 2.2 billion shares worth 2.8 billion ringgit. There were 896 decliners and 166 gainers.

Among the actives, Telekom Malaysia plummeted 5.02 percent, while Sime Darby plunged 4.09 percent, Genting Malaysia tumbled 3.57 percent, IHH Healthcare skidded 2.90 percent, Genting dropped 2.80 percent, Dialog Group soared 2.65 percent, Malaysia Airports Holdings jumped 1.86 percent, Maybank shed 0.91 percent, Kuala Lumpur Kepong lost 0.64 percent, IOI Corporation advanced 0.45 percent, RHB Capital collected 0.37 percent, CIMB Group and MISC both fell 0.34 percent, Public Bank slid 0.32 percent, Tenaga Nasional added 0.13 percent and Digi.com and Petronas Chemicals were unchanged.

The lead from Wall Street is murky as stocks showed a lack of direction on Wednesday before ending mixed and roughly flat.

The Dow added 27.86 points or 0.11 percent to 25,998.92, while the NASDAQ fell 18.25 points or 0.23 percent to 7,954.23 and the S&P 500 gained 1.03 points or 0.04 percent to 2,888.92.

Traders seemed reluctant to make significant moves amid lingering uncertainty about the trade dispute between the U.S. and China, despite reports of a new round of talks in the near future.

In economic news, the Labor Department noted a drop in producer prices in August, while the Federal Reserve's Beige Book said the U.S. economy expanded at a moderate pace through the end of August.

Crude oil prices climbed higher on Wednesday after the U.S. Energy Information Administration noted a drop in crude inventories last week. Crude oil futures for October delivery ended up $1.12 or 1.6 percent at $70.37 a barrel, the best settlement price in about eight weeks.

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