KUALA LUMPUR: The FBM KLCI bounced higher in morning trade as financial and commodities counters returned to a rally.

       At 12.30pm, the key index was up 3.45 points to 1,566.65 as investors reacted to US economic data that pointed to robust demand and higher inflation.

       On the broader market however, the breadth was negative with 365 laggards compared to 273 gainers.

       Banks were led higher by Maybank up six sen to RM8.47 and Hong Leong Bank up six sen to RM19.76. CIMB was unchanged at RM5.56 while Public Bank slipped two sen to RM4.23.

       In commodities plays, Press Metal jumped 11 sen to RM6.20 and Petronas Chemicals climbed 11 sen to RM9.11.

       Technology and industrial counters weighed led by MPI down 46 sen to RM46.54, Pentamaster falling 15 sen to RM4.72 and Greatec shedding 23 sen to RM5.70.

       Top actives were PHB up 0.5 sen to 1.5 sen, AHB down four sen to 24 sen and MQTeh unchanged at 8.5 sen.

       Meanwhile, Asian markets were mixed following US inflation data, which, while at a four-decade high, is not expected to further accelerate the Federal Reserve's hawkish policy.

       Japan's Nikkei was down 0.8% to 28,525, South Korea's Kospi dropped 0.2% to 2,966, China's composite index slid 0.3% and Hong Kong's Hang Seng rose 0.1%.

       In Australia, the ASX200 was up 0.4%.