KUALA LUMPUR (April 2): The FBM KLCI rebounded 0.46% in early trade this morning, lifted by banking stocks, tracking gains at regional markets.

At 9.05am, the FBM KLCI 7.58 points to 1,636.24.

The gainers included Syarikat Takaful Malaysia Keluarga Bhd, Hong Leong Bank Bhd, Public Bank Bhd, Sime Darby Plantation Bhd, NPC Resources Bhd, SAM Engineering & Equipment Bhd, Coastal Contracts Bhd, Magni-Tech Industries Bhd, Malayan Banking Bhd and RHB Bank Bhd.

Asia shares extended their rally on Tuesday as factory activity surveys from China and the United States boosted investor confidence, triggering the largest one-day sell-off in the U.S. Treasury market in nearly three months, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.3 percent to a seven-month high after rallying more than one percent in the previous session, it said.

Kenanga IB Research said Asian markets ended mostly higher after China’s official Purchasing Managers Index showed an encouraging rebound in the country’s manufacturing sector.

However, it said the FBMKLCI fell 14.97 points or 0.91% to close lower at 1,628.66.

“The outlook of the index remains bearish as its 20-and-50 day SMAs crossed below its 100-day SMA.

“However, we believe there is a possibility of a short technical rebound happening soon, as RSI enters into oversold territory.

“Should a technical rebound happen, we look towards 1,660 (R1) and 1,700 (R2) as resistance levels,” it said.