The benchmark FTSE Bursa Malaysia KLCI rose 0.5 per cent to 1,661.25 points.

The ringgit rose 0.2 per cent to 4.125 against the dollar.

Markets were helped by a rebound in oil prices and China’s official manufacturing data, released over the weekend, which remained at two-year highs.

“Given the sustainable rebound in oil prices, tapering fears of further systemic risk of Deutsche Bank and the mild recovery in ringgit, we expect the KLCI to stage a technical rebound this week to retest 1,665-1,670 levels,” the Nikkei Asian Review (NAR) quoted Sia Ket Ee, an analyst with Hong Leong Investment Bank, as saying.

Brent crude oil prices rose almost 4 per cent Monday after Iran called on countries outside the Organisation of the Petroleum Exporting Countries to support the production curbs announced last week.

Global oil prices rose almost 7 per cent last week and the benchmark Brent crude oil contract was trading near three-month highs, said the NAR report.

On the KLCI, 19 of the 30 constituents ended higher Tuesday and six closed unchanged, while overall advancing issues outnumbered declining ones 408 to 398.

Quoting MIDF Research, the NAR report said foreign investors sold RM240.8 million in Malaysian shares last week, trimming year-to-date net foreign inflows to RM2.3 billion.

Malayan Banking and CIMB Group Holdings, the country’s largest banks by assets, rose 1.1 per cent each to RM7.58 and RM4.76 respectively.

RHB Bank, Public Bank and Hong Leong Financial Group advanced 0.9 per cent to RM4.69, 0.3 per cent to RM19.88 and 0.7 per cent to RM15.52 respectively.

Financial stocks have the highest weighting on the KLCI, constituting nearly one-third of the benchmark index.

Oil and gas services major SapuraKencana advanced 2.6 per cent to RM1.61, helped by the overnight rally in crude prices, according to the NAR report.

Sime Darby and agribusiness major PPB Group declined 0.5 per cent to RM7.61 and 0.3 per cent to RM16.14 respectively.