Malaysia's benchmark stock index dropped in early trade, together with broader Asian shares due to heightened geopolitical tensions over the possibility of US military action against the Syrian government.

The index, dragged by losses in national electricity utility Tenaga Nasional Bhd and cigarette maker British American Tobacco Malaysia Bhd, was down 0.75 per cent at 1,709.53 at 9.04am in Kuala Lumpur.

It underperformed both MSCI's broadest index of Asia Pacific shares outside Japan that dropped 0.41 per cent and Tokyo's Nikkei share average that fell 0.42 per cent.

Tenaga shares dropped 1.16 per cent, while British American Tobacco fell 1.83 per cent.

"For the third day in a row, the key index is poised to stage a technical rebound by pulling away from the immediate support line of 1,720," HwangDBS Vickers Research said in a research note to clients on Tuesday.

"This comes after the benchmark index surrendered most of its gains chalked up earlier to close barely higher last Friday and yesterday."

HwangDBS also said investors would watch Encorp Bhd after the property and construction firm secured a contract worth RM181 million in the state of Selangor.

Encorp's shares were unchanged at RM1.10 per share.-- Reuters