Up to 1.54 billion shares exchanged hands.

Gainers outweighed losers 353 to 339.

Key US non-farm payroll and unemployment data for January were to be released later on Friday, providing clues about the world?s largest economy amid fears it is tipping toward recession.

The US Federal Reserve has slashed interest rates to three percent from 4.25 per cent since last week, after the US economy barely grew in the fourth quarter.

'Investors are still worried about the uncertainty in the US,' said Goh Mou Lih, research head at Westcomb Securities.

Banking shares rallied, with DBS gaining 32 cents to 17.70 Singapore dollars, Oversea-Chinese Banking Corp. up five cents to 7.50 and United Overseas Bank rising 52 cents to 17.92.

Among property stocks, CapitaLand fell 10 cents to 5.80, Keppel Land was down two cents to 6.20. City Developments bucked the downward trend, up 20 cents at 11.50.

National carrier Singapore Airlines led blue-chip gainers, earning 24 cents to 15.64.

Singapore Exchange rose 10 cents to 9.70, Singapore Telecommunications gained 18 cents to 3.83 while Neptune Orient Lines fell a cent to 3.18. -- AFP