KUALA LUMPUR (Dec 10): The FBM KLCI looked poised to extend its loss for the fifth day running and remain firmly below the 1,700-point level as it fell 0.65% in early trade.

At 9.05am, the FBM KLCI lost 10.43 points to 1,670.11.

U.S. stock futures declined with equities in Asia amid a potential escalation of tensions between Washington and Beijing, and after signs China’s economy remains under pressure. The yuan weakened with the Australian dollar, while Treasuries climbed with the yen as haven assets caught a bid, according to Bloomberg.

Futures on the S&P 500 Index dropped 0.8 percent and shares fell in Australia, Japan and South Korea, building on a weak Friday session when U.S. equities sank more than 2 percent. Yields on 10-year Treasury slid to 2.83 percent, the lowest in four months. Dampening the mood at the start of this week was news China’s vice foreign minister has summoned the U.S. ambassador Terry Branstad in protest over the arrest of Huawei Technologies Co.’s chief financial officer and weak data on China’s slowing economy, it said.

Hong Leong IB Research in a traders’ brief said in the US, market volatility is likely to increase despite the 90-day trade truce period following the arrest of Huawei’s CFO, which contributed towards escalation of trade tensions between the US and China.

“The only feel good factor over the weekend that may limit the downside risk is the better-than-expected production cutting outcome by the OPEC and the non-OPEC meeting last week.

“On the local front, we think selling pressure could persist, tracking the negative tone on Wall Street as well as the escalating trade tensions between the US and China.

“However, trading activities may be seen within the O&G stocks with the speculation of higher Brent oil prices this week,” it said.

The top losers included British American Tobacco (M) Bhd, Nestle (M) Bhd, Top Glove Corp Bhd, Tenaga Nasional Bhd, Malaysia Airports Holdings Bhd, Kuala Lumpur Kepong Bhd, PPB Group Bhd, Ajinomoto (M) Bhd, Public Bank Bhd, UEM Edgenta Bhd.