Singapore shares edge lower as traders ponder confusing signals on US tariffs; STI down 0.1%
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The losses were bruising on Wall Street overnight but the pain here was limited with the Straits Times Index.
PHOTO: REUTERS
Benjamin Cher
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SINGAPORE – Shares here and elsewhere took a hit on March 7 as uncertainty over whipsawing US tariff policies rattled investors.
The losses were bruising on Wall Street overnight but varied in the region as traders weighed up the confusing signals from Washington.
The pain here was limited, with the Straits Times Index (STI) dipping 0.1 per cent or 2.58 points to 3,914.48, while in the broader market losers pipped gainers 287 to 247 on trade of 1.4 billion shares worth $1.5 billion.
Wall Street set the tone, with the Nasdaq down 2.61 per cent, while the Dow Jones Industrial Average fell 1 per cent and the S&P 500 declined 1.8 per cent.
Regional indexes followed suit. South Korea’s Kospi retreated 0.5 per cent, Japan’s Nikkei 225 was off 2.2 per cent, the Hang Seng in Hong Kong lost 0.6 per cent and Malaysian shares slipped 0.8 per cent. Australian stocks took a sizeable belting, falling 1.8 per cent to a 10-week low.
Growth concerns remained the dominant headwind as sentiments remained bearish, said IG market strategist Yeap Jun Rong, adding that a stronger catalyst is still needed for a sustained turnaround.
He noted that a new US jobs report showed layoffs at levels not seen since the last two recessions.
The surge in job cuts, coupled with mass federal government layoffs, cancelled contracts and escalating trade-war fears are amplifying concerns over a consumer spending slowdown.
Tariff flip-flops also suggest that trade uncertainties will drag on for longer. “The unpredictability of tariff negotiations has been challenging to price for markets,” said Mr Yeap. Singapore blue chips reflected the uncertainty. The banks were mixed, with DBS up 0.04 per cent to $45.98 and UOB ahead 0.1 per cent to $38.63, but OCBC lost 0.2 per cent to $17.16.
The STI’s top gainer was UOL, up 1.6 per cent to $5.81, while Hongkong Land languished at the other end of the spectrum, off 2.6 per cent to US$4.46. THE BUSINESS TIMES
