Singapore stocks edge up higher ahead of US-China talks

SINGAPORE - Local stocks rose on June 9, in line with gains in Asian markets on hopes that a fresh round of US-China trade talks will ease tensions. Investors also digested the latest Chinese inflation and trade data.

Trade tensions between the world’s two largest economies may be moderating after China said on June 7 that it approved some applications for rare earth exports, without specifying the countries or industries involved.

This comes as China continues to grapple with weak domestic growth. Its consumer price index fell 0.1 per cent year on year in May, smaller than the 0.2 per cent drop forecast, while the producer price index declined by 3.3 per cent, compared with the 3.2 per cent decrease that analysts expected.

The Asian giant’s export growth also missed expectations in May, driven by a sharp decline in shipments to the US.

In Singapore, the benchmark Straits Times Index (STI) rose 0.1 per cent or 2.03 points to end at 3,936.32.

In the broader market, gainers beat losers 291 to 218, as 807.27 million securities worth nearly $994 million changed hands.

DFI Retail led the gains on the STI, rising 5.3 per cent, or 14 US cents, to close at US$2.80. The Singapore Exchange was the biggest decliner, shedding nearly 2 per cent, or 28 cents, to $14.06.

The trio of local banks ended up. DBS Bank gained 0.8 per cent, or 37 cents, to close at $45.49; OCBC Bank advanced 0.6 per cent, or nine cents, to $16.37; and UOB rose 0.2 per cent, or seven cents, to $35.32.

In the broader Asian region, Hong Kong’s Hang Seng Index led advances, closing 1.63 per cent higher. South Korea’s Kospi was next, with a 1.55 per cent gain. Japan’s Nikkei 225 rose 0.9 per cent, and Taiwan’s Taiex ended 0.6 per cent higher.

THE BUSINESS TIMES