SINGAPORE (THE BUSINESS TIMES) - Asian markets headed south on Wednesday (July 7) as regional investors took their cue from retreats on Wall Street overnight and went into a defensive mode.
The local bourse was one of the biggest losers.
The benchmark Straits Times Index (STI) declined 1.54 per cent or 48.99 points to end at 3,141.60.
On the broader market, losers outnumbered gainers 304 to 208, with 1.5 billion shares worth $1.41 billion changing hands.
Losses were more modest elsewhere.
The Nikkei 225 in Japan fell 0.96 per cent, while the Kospi in South Korea ended 0.6 per cent lower, a possible response to news that the country reported its highest Covid-19 daily case count in months on Wednesday.
Hong Kong's Hang Seng Index extended its losses into a seventh day, sliding 0.4 per cent to 27,960.62.
The one bright spot was Australia, where the S&P/ASX 200 gained 0.9 per cent on modest trading volumes with investors defying the Wall Street declines and the one-week extension of Sydney's Covid-19 lockdown.
IG Market strategist Yeap Jun Rong said: "Sentiments largely mirrored the weak performance in US markets overnight, where a lower-than-expected print in the US non-manufacturing PMI weighed on cyclical and reopening sectors.
"This comes along with several risks, which include ongoing Covid-19 resurgences and a cyber-security clampdown by Chinese authorities, which weighed on tech firms in the region."
Most of the STI constituents ended lower, with blue chip counters Keppel Corporation, Singapore Airlines (SIA), OCBC and DBS leading the losers.
Keppel fell 2.77 per cent to $5.27, while SIA slid 2.7 per cent to close at $5.04.
OCBC ended 2.54 per cent down at $11.89 and DBS shed 2.53 per cent to $30.09.
Jardine Matheson Holdings was the top advancer, rising 1.94 per cent to US$64.76.
Yangzijiang Shipbuilding and Dairy Farm were the remaining two counters that made gains. YZJ inched up 0.7 per cent to close at $1.44, while Dairy Farm ended 0.24 per cent higher at US$4.23.
Data out overnight on United States job figures and the Federal Reserve's minutes are expected to underpin trading on Wall Street and the local region on Thursday.
