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Rebound Predicted For Malaysia Stock Market

The Malaysia stock market on Tuesday halted the two-day winning streak in which it had advanced nearly 20 points or 1.1 percent. The Kuala Lumpur Composite Index now rests just above the 1,790-point plateau although it's expected to bounce higher again on Wednesday.

The global forecast for the Asian markets is positive on easing trade war fears and a jump in crude oil prices. The European and U.S. markets were up and the Asian markets are expected to open in similar fashion.

The KLCI finished modestly lower on Tuesday following losses from the financials, industrials and plantations.

For the day, the index slipped 10.82 points or 0.60 percent to finish at 1,792.94 after trading between 1,788.52 and 1,797.97. Volume was 1.788 billion shares worth 1.977 billion ringgit. There were 611 decliners and 272 gainers.

Among the actives, IHH Healthcare plummeted 4.35 percent, while CIMB Group plunged 3.05 percent, Genting Malaysia tumbled 1.81 percent, Maybank skidded 1.62 percent, Malaysia Airports Holdings spiked 0.78 percent, Telekom Malaysia jumped 0.64 percent, Petronas Chemicals shed 0.53 percent, Sime Darby lost 0.39 percent, Dialog Group fell 0.29 percent, Public Bank slid 0.16 percent, Tenaga Nasional added 0.13 percent and IOI Corporation, Maxis and Petronas Dagangan were unchanged.

The lead from Wall Street is form as stocks moved mostly higher on Tuesday, with traders shrugging off concerns about the escalating trade war between the U.S. and China.

The Dow added 184.84 points or 0.71 percent to 26,246.96, while the NASDAQ gained 60.32 points or 0.76 percent to 7,956.11 and the S&P was up 15.51 points or 0.54 percent to 2,904.31.

Traders expressed relief that the rates of tariffs that the U.S. and China are expected to impose are not as high as feared. However, the tariffs are set to rise on January 1, and the U.S. will impose tariffs on another $267 billion worth of Chinese imports if China takes retaliatory action.

In economic news, the National Association of Home Builders said homebuilder confidence held steady in September.

Crude oil prices edged higher on Tuesday, with traders betting on a possible supply shortage after U.S. sanctions on Iran come into force from early November. Crude oil futures for October delivery ended up $0.94 or 1.4 percent at $69.85 a barrel.

Closer to home, Malaysia will provide August figures for consumer prices later today; in July, inflation was up 0.2 percent on month and 0.9 percent on year.

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