KUALA LUMPUR (Sept 21): The FBM KLCI rose 0.41% in early trade this morning, tracking gains at most regional markets, lifted by select index-linked blue chips.

At 9.05am, the FBM KLCI was up 7.40 points to 1,811.10.

The early gainers included British American Tobacco (M) Bhd, Aeon Credit Service (M) Bhd, QL Resources Bhd, Carlsberg Brewery Malaysia Bhd, Petronas Gas Bhd, Nestle (M) Bhd, Tenaga Nasional Bhd, Scientex Bhd, Mi Equipment Holdings Bhd and Malaysia Airports Holdings Bhd.

Stocks in Asia look set to round out two strong weeks on a high after U.S. equities climbed to fresh records and concerns surrounding trade tensions showed signs of easing. Treasury yields held near the highest level this year, while the dollar slipped, according to Bloomberg.

Japan’s Topix index is on course for the best week in two years, while futures signaled gains when markets open in China and Hong Kong. Emerging-market assets continued to rally from recent lows. The sell-off in sovereign bonds has steadied in the past two days following this week’s rise above 3 percent for 10-year U.S.yields, something equity investors are taking in their stride amid optimism over earnings and economic growth, it said.

Hong Leong IB Research in a traders’ brief said taking cues from recent bold statements from the US-China leaders, the prospects for significant progress towards de-escalation in the short term are low.

“Nevertheless, investors remain sanguine that the heightened anxiety over an escalating US-China trade conflict would compromise to eventually quell fears of a growth-hindering trade war in the long term, thus providing support to the ongoing rally.

“Key support and resistance  are 26800 and 26000 levels, respectively.

“The fresh record close in Dow overnight and expectations of potential end 3Q window dressing should bode well for KLCI to grind higher towards 1810/1818/1827 territory in the short term.

“However, the relief rally from post GE14 low at 1,657 (June 28) is likely to be capped near 1,840, due to the lack of domestic rerating catalysts, given the prospects of protracted US-China trade war, EM contagion risks, tightening financial conditions and expectations of further “belt-tightening budget 2019” to be tabled on Nov 2. Supports are situated near 1770-1776 zones,” it said.