Asia stocks rise on cooling geopolitical tensions; STI up 1.5%

SINGAPORE - Stocks in Singapore ended higher on April 22, tracking regional gains amid expectations of lower geopolitical tensions between Israel and Iran.

The Straits Times Index (STI) rose 1.5 per cent or 48.66 points to 3,225.17. Across the broader market, gainers outnumbered losers 363 to 235, after two billion securities worth $1.31 billion changed hands.

Elsewhere in Asia, the Nikkei 225 gained 1 per cent, the Hang Seng Index climbed 1.8 per cent, the Kospi Composite Index rose 1.5 per cent and the FTSE Bursa Malaysia KLCI was up 0.8 per cent.

The relief among Asian stocks follows the heavy sell-off in global equities over the past week, and comes amid expectations that geopolitical tensions between Israel and Iran may fizzle out given Iran’s tame response, said Mr Yeap Jun Rong, market analyst at IG.

But the mixed performance in the United States may have impacted April 22’s Asian session, while some investors took a wait-and-see position amid a quiet economic front to start the week, he added.

On the STI, Seatrium was the biggest gainer, rising 7.8 per cent or 0.6 cent to 8.3 cents.

Meanwhile, Sembcorp Industries was one of the biggest decliners, falling 0.6 per cent or 3 cents to $5.29.

The local banks ended mixed.

DBS Bank said during its 2023 financial year fourth-quarter results that it would issue a share for every 10 shares held, in a bid to boost shareholder returns.

The bank, which began trading ex-bonus on April 22, fell 6.4 per cent or $2.34 to $34.07. After adjusting for the bonus issue, DBS shares closed 2.9 per cent or 97 cents higher.

OCBC Bank gained 1 per cent or 14 cents to $13.83, while UOB rose 1.7 per cent or 52 cents to $30.45.

THE BUSINESS TIMES