KUALA LUMPUR (Jan 7): The FBM KLCI advanced in early trade Tuesday, as gains in select blue chips lifted the benchmark index.

At 9.05am, the FBM KLCI gained 1.05 points to 1,598.81.

The early gainers included Public Bank Bhd, Revenue Group Bhd, KKB Engineering Bhd, IHH Healthcare Bhd, Datasonic Group Bhd, Tenaga Nasional Bhd, Poh Huat Resources Holdings Bhd and Hartalega Holdings Bhd.

Bloomberg said Asian stocks looked set to rebound as the risk-off mood sparked by geopolitical tensions in the Middle East ebbed. U.S. shares closed higher while Treasuries and the dollar dropped.

Futures gained in Tokyo and Hong Kong. Australian shares opened higher. U.S. equity futures were flat. Earlier, the S&P 500 Index rose for the third time in four sessions, erasing early losses, as heavyweight technology companies led a recovery. Gold retreated from the highest in more than six years and the yen held losses. Ten-year Treasury yields rose to above 1.80%. Crude oil fell to trade below $63 a barrel, after reaching the highest since April, it said.

JF Apex Securities Research said US markets rose overnight led by technology counters as investors shake off geopolitical concerns over US' attack that killed Iran's top military leader.

It said that earlier, European stocks declined as investors switched from equities to safe haven assets such as gold and bond following the US-Iran tension.

“On the local market, the FBM KLCI dropped 13.62 points to 1597.76 points.

“Following the mixed performances in the US and Europe, the FBM KLCI could trend sideways below the resistance of 1,615 points,” it said.