KUALA LUMPUR: The FBM KLCI crept higher over the morning session, spurred on by a rally in US stocks overnight as oil prices continued to subside on easing tensions in the Middle East.

At 12.30pm, the key index was up 3.2 points to 1,728.93 with buying seen in selected bank and plantation stocks. Hong Leong Bank gained 18 sen to RM22.28, Ambank jumped six sen to RM7.09 and RHB added eight sen to RM8.74.

Kuala Lumpur Kepong rose 26 sen to RM21.26 and SD Guthrie gained seven sen to RM6.64. In energy-related plays, MISC was up seven sen to RM8.16 while PETRONAS Dagangan added 24 sen to RM19.68.

The positive sentiment spilled over into the lower caps, with the broader market registering 539 advancing issues compared to 399 decliners. Trading volume was 1.51 billion shares changing hands for RM1.29bil.

Sector-wise, technology shares jumped 1.02%, plantations rose 0.48%, property climbed 0.6%, financial services was up 0.35% and energy shares added 0.13%. Consumer services dipped 0.48% while REITs shed 0.65%.

The top traded shares included Nationgate rising seven sen to RM1.30, HHRG flat at 11.5 sen and Zetrix AI gaining one sen to 73.5 sen.

Meanwhile, Japan's benchmark Nikkei index fell 0.33% to 63,536 as investors grew nervous over further yen-buying efforts to prop up the currency.

South Korea's Kospi fell 0.76% to 6,209, as the market struggled to stabilise after a historic rout last month that left investors rattled. 

In China, the Shanghai Composite index rising 0.16% to 3,815 and Hong Kong's Hang Seng dropping 0.49% to 26,882.