KUALA LUMPUR (March 24): Malaysian stocks rallied 2.03% in line with regional gains, against the backdrop of the pledge by the US Federal Reserve to spend all that it took to stabilise the financial system.

At 9.05am, the FBM KLCI rose 26.16 points to 1,286.04, lifted including by index-linked financial services stocks.

The early gainers were led by Public Bank Bhd, Carlsberg Brewery Malaysia Bhd, Hong Leong Bank Bhd, Malaysian Pacific Industries Bhd, British American Tobacco (M) Bhd, RHB Bank Bhd, Kuala Lumpur Kepong Bhd, LPI Capital Bhd, Frontken Corp Bhd and Dufu Technology Bhd.

Reuters said Asian stocks rallied on Tuesday as the U.S. Federal Reserve's sweeping pledge to spend whatever it took to stabilise the financial system eased debt market pressures, even if it could not offset the immediate economic hit of the coronavirus.

While Wall Street seemed unimpressed, investors in Asia were encouraged enough to lift E-Mini futures for the S&P 500 by 1.9% and Japan's Nikkei by 4.9%, it said.

JF Apex Seurities Research said US markets tumbled 3% overnight after lawmakers failed to roll out the fiscal stimulus needed to save the economy.

It said that earlier, European stocks declined due to ongoing concerns over the coronavirus.

“On the local market, the FBM KLCI plunged 43.40 points to 1259.88 points.

“Following the bearish sentiment in global markets, the FBM KLCI could extend its selldown towards the support of 1210 points,” it said.