Singapore's Straits Times Index (STI) failed to build on Tuesday's rebound, when the benchmark had its best session in over a year.
"Tuesday's recovery, although pleasing, looked very much like a bullish correction in a bear market," Oanda Asia-Pacific senior market analyst Jeffrey Halley said.
Nonetheless, trading yesterday did get off to a good start, with the STI opening 0.9 per cent higher.
However, those gains were reversed as the session progressed and the blue-chip index ended the day 1.7 per cent lower at 2,783.72.
Twenty-four of the STI's 30 components ended the day in the red.
Moods were lifted after a strong session on Wall Street, but fizzled out as worries over the coronavirus outbreak continue to fester and doubts emerged over whether fiscal measures in the United States - yet to be announced in full detail - would be substantial. Oil prices failed to rally as well.
Deputy Prime Minister Heng Swee Keat said at a dialogue yesterday that the Government has started work on a second stimulus package, but his remarks did not have a notable impact on markets.
Among STI counters, conglomerate Keppel Corp fell 2.6 per cent to $5.55 to close at its lowest since December 2016.
RHB Research analyst Leng Seng Choon noted that Keppel shares were trading at attractive levels, even though the recent slump in oil prices might hurt Keppel's sizeable offshore and marine business. He added that its property segment "should help support the conglomerate's share price and dividends".
Local banks also resumed their slide. DBS dropped 2.2 per cent to $21.01, OCBC Bank finished 2.3 per cent lower at $9.50, and United Overseas Bank ended the day at $21.37, falling 2.6 per cent.
Research analyst at investment bank Jefferies Krishna Guha noted that the trio have historically resilient earnings and dividend cushion. Dividend yields for the banks are also at levels not seen since the global financial crisis.
One of the biggest losers in percentage terms was the Singapore Exchange (SGX), which fell 34 cents or 3.7 per cent to $8.85.
Traders were likely to have taken profit on the bourse operator after its 6.3 per cent jump on Tuesday, after data showed SGX's market turnover increased last month on higher volatility.
Trading volume on the SGX was 1.94 billion securities. Total turnover was $2.06 billion. Decliners trumped advancers 324 to 155.
Elsewhere in the Asia-Pacific, benchmarks in Australia, China, Hong Kong, Japan, South Korea and Taiwan were all lower.
