SINGAPORE - Local shares slipped on Tuesday as ongoing concerns over global economic growth weighed down the market.

Australia's central bank also cut interest rates to a record low, which led the Japanese to strengthen and put a dampener on stocks in the region.

The benchmark Straits Times Index fell 15.33 points or 0.5 per cent to 3,408.02 on Tuesday.

The drop in the index was led by banks and Singtel, as traders sold off recent outperformers and placed their bets on other sectors such as offshore and marine and property.

Elsewhere in the region, stocks in Sydney rose 1.5 per cent due to the monetary easing in Australia, while Tokyo's Nikkei index fell 1.3 per cent because of the stronger yen.

Hong Kong's Hang Seng Index gained 0.3 per cent and Shanghai jumped 2.5 per cent due to expectations of monetary easing in China.

"There's speculation about a reserve-requirement ratio cut," said Mr Wu Kan, a fund manager at Dragon Life in Shanghai, in a Bloomberg report. "Though it's not confirmed, the speculation is driving the market to some extent.

In Singapore, 1.23 billion shares worth $1.16 billion changed hands. The 183 gainers were outnumbered by the 211 losers, with 393 counters flat.