Key regional markets went the opposite way from rising bond yields yesterday after Federal Reserve chairman Jerome Powell held out the prospect of a rise in inflation and sparked an overnight sell-off in equities and bonds in the US.

Singapore shares closed down as the Straits Times Index (STI) fell 0.03 per cent to 3,013.85 points.

The gauge, however, closed about 2.1 per cent higher over the week.

SBS Transit's shares traded marginally higher at $3.02, up 1 per cent, after the Government announced in Parliament yesterday that it would review the fixed-fee framework for the MRT Downtown Line, which SBS Transit operates.

Ground handler and in-flight caterer Sats closed 1.6 per cent lower at $4.30, as the aviation sector is unlikely to enjoy a V-shaped take-off this year.

FJ Benjamin's shares were the most heavily traded, with about 168.4 million transacted. The retailer's share price inched up 0.1 cent to close at 4.4 cents.

The company was removed from the Singapore Exchange's watch list and also announced a partnership with e-commerce platform Lazada for its retail business.

Advancers outnumbered decliners 255 to 211 in the broader market, on a turnover of 2.44 billion securities worth $1.61 billion.

Most regional markets declined, with only Malaysia gaining.

Japan's Nikkei 225 closed 0.23 per cent lower, while South Korea's Kospi shed 0.57 per cent.

Australia's S&P/ASX 200 was down by 0.74 per cent. The Shanghai Composite Index posted a 0.04 per cent drop while Hong Kong's Hang Seng Index closed 0.47 per cent lower.

The FTSE Bursa Malaysia Kuala Lumpur Composite Index climbed 1.19 per cent.