Up to 1.66 billion shares exchanged hands.

Losers outweighed gainers 445 to 270.

Following an emergency 0.75-point rate cut last week, the Fed, the central bank, trimmed another 50 basis points from its federal funds rate, the bank-to-bank overnight lending rate.

The Fed cited 'considerable stress' in financial markets for its latest cut which lowered the rate to 3.0 percent.

Its decision followed a report that the US economy barely grew in the fourth quarter.

United States GDP fell a steeper than expected 0.6 per cent in the 2007 fourth quarter, down from a robust 4.9 per cent pace in the third quarter.

'Things still keep deteriorating in the US and probably elsewhere too,' said K. Ajith, an analyst at UOB Kay Hian.

'It's just basically the credit crunch has intensified so there is less confidence in the Fed's ability to just solve this overnight,' he said.

Banking shares were mixed, with DBS Group losing 32 cents to 17.38 Singapore dollars and Oversea-Chinese Banking Corp down nine cents to 7.45. United Overseas Bank was steady at 17.40.

Among property stocks, City Developments declined 26 cents to 11.30 dollars, CapitaLand was down nine cents to 5.90 dollars and Keppel Land dropped eight cents to 6.22.

Among blue chips, bourse operator Singapore Exchange fell 35 cents to 9.60 and Singapore Airlines was down 14 cents to 15.40.

Neptune Orient Lines finished eight cents higher at 3.19. -- AFP