The global forecast for the Asian markets suggests consolidation over the outlook for interest rates and likely selling in the retail sector. The European and U.S. markets were down and the Asian bourses figure to open in similar fashion.
The KLCI finished barely lower on Wednesday following mixed performances from the plantations, glove makers and telecoms.
For the day, the index eased 0.62 points or 0.04 percent to finish at 1,518.16 after trading between 1,516.57 and 1,527.84. Volume was 2.723 billion shares worth 1.907 billion ringgit. There were 444 decliners and 394 gainers.
Among the actives, Axiata advanced 0.65 percent, while Dialog Group jumped 1.68 percent, Digi.com plunged 1.81 percent, Genting slumped 0.63 percent, Genting Malaysia gained 0.33 percent, Hartalega Holdings and INARI both tumbled 1.69 percent, IHH Healthcare rose 0.15 percent, IOI Corporation added 0.47 percent, Kuala Lumpur Kepong soared 2.40 percent, Maxis skidded 0.75 percent, MISC sank 0.55 percent, MRDIY rallied 1.41 percent, Petronas Chemicals lost 0.34 percent, PPB Group perked 0.24 percent, Press Metal declined 1.25 percent, RHB Capital retreated 1.01 percent, Sime Darby climbed 0.87 percent, Sime Darby Plantations eased 0.21 percent, Telekom Malaysia spiked 1.72 percent, Tenaga Nasional fell 0.22 percent, Top Glove surged 2.99 percent and CIMB Group, Maybank, Public Bank and Petronas Dagangan were unchanged.
The lead from Wall Street is negative as the major averages opened lower on Wednesday, pared the losses as the day progressed but still ended firmly in the red.
The Dow dropped 171.69 points or 0.50 percent to finish at 33,980.32, while the NASDAQ tumbled 164.43 points or 1.25 percent to close at 12,938.12 and the S&P 500 slumped 31.16 points or 0.72 percent to end at 4,274.04.
The failed recovery attempt came after the Federal Reserve released the minutes of its latest monetary policy meeting, which some traders seemed to interpret as pointing to a slowdown in the pace of interest rate hikes. But the Fed minutes reaffirmed the central bank's plans to continue raising interest rates in an effort to return inflation to its 2 percent objective.
Quarterly results from Target (TGT) also weighed on the markets after reporting earnings fell well short of estimates as it cut prices in an effort to reduce excess inventory.
Traders were also reacting to a Commerce Department report showing U.S. retail sales came in flat in July amid pullbacks in gas station and auto sales.
Crude oil prices climbed higher Wednesday, lifted by data showing declines in crude and gasoline inventories in the U.S. last week. West Texas Intermediate Crude oil futures for September ended higher by $1.58 or 1.8 percent at $88.11 a barrel.