KUALA LUMPUR (June 18): The FBM KLCI closed up 14.36 points or 0.88% today with Asian stock indices amid anticipation of the US Federal Reserve's interest rate decision ahead of the conclusion of its Federal Open Market Committee's two-day meeting on Wednesday (June 19).

At 5pm today, the KLCI closed at its intraday high at 1,652.76 as world equity markets priced in potential US interest rate cuts this year. Across Asian stock markets today, South Korea's Kospi closed up 0.38% while Hong Kong's Hang Seng was up 1%.

It was reported that the US central bank may leave interest rates unchanged during the two-day meeting, which is deemed crucial for investors looking for US rate cut hints in 2019. Lower US interest rates bode well for Asian markets in anticipation that global fund managers will shift their money into higher-yielding Asian assets such as stocks, bonds and currencies.

In Malaysia, Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com that the KLCI's positive performance today "mirrors gains across regional peers as investors monitor the US Federal Reserve policy meeting".

Reuters reported that most Asian stock markets rose on Tuesday but gains were capped by investor caution ahead of the US Federal Reserve policy decision, while crude oil prices dipped as global growth worries overshadowed supply concerns. It was reported that the Fed, facing fresh demands by US President Donald Trump to cut interest rates, begins a two-day meeting later on Tuesday.

According to the newswire, the central bank is expected to leave borrowing costs unchanged this time but possibly lay the groundwork for a rate cut later this year.

Across Bursa Malaysia, 2.03 billion shares worth RM1.72 billion were traded.

Top gainers included KLCI stocks Hong Leong Bank Bhd, Tenaga Nasional Bhd and Axiata Group Bhd after the shares rose on bargain hunting.

The most-active stock was newly-listed Mestron Holdings Bhd, which registered a trade volume of some 368 million shares. Mestron closed up 0.5 sen at 16.5 sen.