Regionally, Hong Kong’s Hang Seng Index rose 1.05% to 26,433.70, South Korea’s Kospi Index soared 2.57% to 4,042.83, and Japan’s Nikkei 225 Index surged 2.46% to 50,512.32.

Singapore’s Straits Times Index increased 0.41% to 4,440.30, and China’s SSE Composite Index gained 1.18% to 3,996.94.

US treasury secretary Scott Bessent said that the US and China have agreed on the framework of a possible trade deal, which will be discussed when their respective leaders meet later this week.

Bessent told CBS that the framework includes a final agreement on TikTok’s US operations and a delay in China’s new rare earth mineral controls.

He did not anticipate that the 100% tariff on Chinese goods proposed by president Donald Trump would come into force, and that China would resume large soybean purchases from the US, while both countries seek to avoid further escalation in their trade dispute.

Meanwhile, Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said regional sentiment continued to improve with equities moving higher, driven by growing investor confidence in a potential US rate cut and encouraging signs from the US-China trade discussions.

“On the domestic front, sentiment has also turned more positive amid improving geopolitical and economic developments, providing investors with some relief after weeks of uncertainty,” he told Bernama.

At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) gained 5.11 points, or 0.32% to 1,618.38 from Friday’s close of 1,613.27.

The benchmark index opened 6.84 points firmer at 1,620.11 and moved between 1,617.45 and 1,623.23 throughout the trading session.

Market breadth was mixed with 543 gainers matching 543 losers, while 540 counters were unchanged, 1,099 untraded, and 12 suspended.

Turnover expanded to 3.44 billion units worth RM2.91 billion compared with 2.98 billion units worth RM2.43 billion last Friday.

Among heavyweights, Maybank added 1 sen to RM9.91, CIMB Group rose 8 sen to RM7.45, Tenaga Nasional gained 14 sen to RM13.36, and IHH Healthcare increased 2 sen to RM8.35, while Public Bank was unchanged at RM4.22.

On the most active list, ACE Market debutant Insights Analytics surged 29.5 sen to 65.5 sen, Top Glove added 1 sen to 68.5 sen, and Tanco edged up 0.5 sen to 89 sen, while Land & General slid 1 sen to 15.5 sen. TWL Holdings and Perak Transit were flat at 2.5 sen and 33.5 sen, respectively.

Top gainers included UMS Integration, which rose RM1.08 to RM5.80, Malaysian Pacific Industries added 56 sen to RM30.54 and United Plantations advanced 50 sen to RM24.50, while Kuala Lumpur Kepong and Fraser & Neave rose 38.0 sen each to RM20.90 and RM28.54, respectively.

Top decliners included Nestle, which declined RM1.40 to RM106.60 and Dutch Lady slipped 20 sen to RM26.10.

Petronas Gas and Hi Mobility shed 14 sen to RM18.60 and RM2.38, respectively, while Eco-Shop Marketing fell 11 sen to RM1.44.

On the index board, the FBM Emas Index increased 38.00 points to 12,109.0, the FBMT 100 Index gained 41.04 points to 11,844.63, the FBM Emas Shariah Index climbed 53.22 points to 12,199.91, the FBM 70 Index increased 75.58 points to 17,246.56, while the FBM ACE Index dropped 55.91 points to 5,236.75.

By sector, the financial services index went up 45.28 points to 18,249.92, the industrial products and services index edged up 0.34 of-a-point to 172.25, and the plantation index jumped 107.13 points to 8,016.42. The energy index fell 7.93 points to 783.39.

The Main Market volume improved to 1.77 billion units valued at RM2.49 billion from 1.56 billion units valued at RM2.15 billion last Friday.

Warrants turnover expanded to 1.08 billion units worth RM124.39 million compared with 971.32 million units worth RM111.42 million previously.

The ACE Market volume climbed to 587.10 million units valued at RM291.77 million from 447.39 million units valued at RM172.25 million last Friday.

Consumer products and services counters accounted for 345.30 million shares traded on the Main Market, industrial products and services (297.42 million), construction (89.81 million), technology (225 million), financial services (68.65 million), property (360.13 million), plantation (51.94 million), real estate investment trusts (23.01 million), closed-end fund (49,200), energy (91.21 million), healthcare (139.50 million), telecommunications and media (25.10 million), transportation and logistics (16.74 million), utilities (39.25 million), and business trusts (25,500).