Singapore stocks buck regional sentiment as STI gains 0.5%

Singapore stocks ended higher yesterday, bucking regional losses after major US indexes logged their first weekly decline in a month to break a four-week winning streak.

The benchmark Straits Times Index (STI) gained 0.5 per cent to 3,262.57, while major indexes in Hong Kong, Japan, South Korea and Australia closed between 0.5 per cent and 1.2 per cent lower.

IG market strategist Yeap Jun Rong noted that a fall in Wall Street's main stock market indexes could have had a negative influence on the Asia session, with some selling taking place ahead of a key symposium in the US this week.

Asian markets were broadly lower owing to renewed concerns about the Federal Reserve's plans to ramp up interest rates to combat runaway inflation. All eyes are on the symposium in Jackson Hole, Wyoming, on Thursday, where Fed chief Jerome Powell will deliver a speech that will be widely followed by the market for clues about the US central bank's next moves.

A recent dip in inflation and signs of economic slowdown have raised hopes that policymakers will ease, and possibly cut, interest rates next year, after two successive 75-basis-point hikes this year.

Mr Yeap said the Hang Seng Index is back to retest the lower consolidation base for the third time after trading largely within consolidation over the past one month.

Across Singapore's broader market, losers outnumbered gainers 252 to 206 after 1.31 billion shares worth $1.09 billion changed hands.

Among STI constituents, Keppel DC Reit was the top decliner, finishing 2 per cent lower at $1.97.

Wilmar International and ST Engineering fell 1.4 per cent and 1.3 per cent, respectively, to close at $4.11 and $3.88.

Two of the three local banks topped the STI performance table. DBS gained 2.3 per cent to end at $32.79, while UOB closed up 2 per cent at $27.33. OCBC traded in the other direction, with a 0.3 per cent drop in its value to $12.18.