Global financial markets recoiled yesterday after the US Federal Reserve said it would keep interest rates low but failed to come up with further stimulus measures.
Benchmark indices in Tokyo, Hong Kong, Seoul, Bangkok, Kuala Lumpur and Jakarta ended in negative territory although Singapore stocks did not perform too poorly.
The Straits Times Index (STI) fell 4.37 points or 0.17 per cent to 2,500.78, with losers outgunning gainers 270 to 163 on trade of 1.33 billion shares worth $1.33 billion.
Agribusiness giant Wilmar International was among the STI component stocks that rose despite the negative sentiment. It closed 1.16 per cent higher at $4.35.
Wilmar is expected to list its Chinese unit on the Shenzhen bourse next month - a long-awaited move that could unlock significant value for the group, said some analysts.
Singapore's leading real estate investment trusts (Reits) also rose.
This partly reflects the ongoing hunt for yield in a world of low interest rates, but also comes amid news of Chinese technology giants such as Tencent, ByteDance and Alibaba investing in Singapore.
Mapletree Commercial Trust was the best performing STI component stock, rising 2.5 per cent to $2.05. Ascendas Reit was another winner, climbing 2.18 per cent to $3.28, and CapitaLand Commercial Trust rose 1.16 per cent to $1.75.
At the other end of the spectrum, Sembcorp Industries was the worst performing STI stock, after a torrid run over the past week. It closed 2.24 per cent lower at $1.31.
Among the smaller cap stocks, mobile phone handset designer LCT jumped 37.2 per cent to 59 cents after a co-founder of the company made an offer to take it private at 60 cents a share.
Elsewhere, the Nikkei ended 0.67 per cent lower, with the Bank of Japan's unchanged policy failing to support the market.
Hong Kong's Hang Seng fell 1.56 per cent and Shanghai retreated 0.41 per cent, tracking Wall Street losses.
The Kospi in Seoul was 1.22 per cent lower, dragged down by tech shares, while Malaysian stocks lost 1.19 per cent.
"Investor sentiment was dented after the United States Federal Reserve remained cautious over offering further liquidity," said Kiwoom Securities analyst Seo Sang-young.
Oil prices also edged down, a day after chalking up big gains of more than 4 per cent. That came on the back of the dovish Fed, a surprise plunge in US stockpiles to levels not seen since April and news that Hurricane Sally had prompted some petroleum producers in the Gulf of Mexico to shut down production.
• Additional information from Reuters, Agence France-Presse
