Singapore stocks follow regional declines, with STI down 1.4%

The Straits Times Index (STI) shed 1.4 per cent to close at 3,181.97 on Monday, tracking regional declines as markets continue to reel from signs of more economic pain.

In the broader market, losers beat gainers 413 to 194, with 1.56 billion securities worth $1.70 billion traded.

IG market strategist Yeap Jun Rong noted that, in addition to the declines posted by the various US indexes, short-term rates in the United States ticked higher as well.

"The inversion of the yield curve at a new low since 1981 reflects increased risks of recession, which may bode the question of whether economically sensitive sectors could bear the brunt of the next leg of sell-off if economic conditions were to reveal further signs of weakness," he said.

Across the region, major market indexes were in the red. South Korea's Kospi composite index declined 3 per cent, Japan's Nikkei 225 fell 2.7 per cent, the Jakarta composite index dropped 0.7 per cent and the Kuala Lumpur Composite Index shed 0.8 per cent, while Hong Kong's Hang Seng Index edged lower by 0.4 per cent.

Australian shares hit a more than three-month low on Monday, with investors staying away from riskier assets on fears of a global slowdown.

The S&P/ASX 200 index dropped as much as 1.9 per cent by 0022 GMT, its lowest since June 21. The benchmark hits its lowest in two months on Friday.

Inflight caterer and ground handler Sats and liquor company Emperador were the only counters on the STI to remain in the black. Sats gained 1 per cent to close at $3.90, while Emperador also rose 1 per cent to close at 50 cents.

On the other hand, Yangzijiang Shipbuilding was at the bottom of the table, falling by 10.5 per cent to close at $1.11.

This comes after heavy trading in the counter prompted a query from the Singapore Exchange Regulation last Friday.