Singapore stocks rise as US inflation data stays within expectations; STI up 1%
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Across the broader market, gainers beat losers 313 to 225, as 1.2 billion securities worth $916.8 million changed hands.
PHOTO: ST FILE
Yong Jun Yuan
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SINGAPORE – Lower inflation numbers in the United States gave Wall Street a modest lift overnight and went on to spark a low-level regional rally that the local stock market joined with gusto.
The positive sentiment sent the Straits Times Index (STI) up 1 per cent or 30.58 points to 3,249.51 on Thursday, with gainers outstripping losers 313 to 225 after 1.2 billion shares worth $916.8 million changed hands.
Major markets in Asia were also in the black. Hong Kong’s Hang Seng Index rose 0.2 per cent, the Nikkei 225 in Tokyo gained 1.4 per cent and South Korea’s Kospi climbed 1.5 per cent.
Australia’s bourse headed north as well, up 0.5 per cent on that US inflation data, which was largely within investor expectations.
The US’ consumer price index (CPI) rose 0.6 per cent from July to August, with petrol accounting for more than half of the increase. Core CPI, which excludes food and energy costs, rose 0.3 per cent.
Saxo’s Asia-Pacific strategy team said that as US inflation remained firm, the Federal Reserve could continue to push for higher-for-longer interest rates at next week’s Federal Open Market Committee meeting. However, it noted that Wall Street largely took news of the latest data well, with investors increasingly confident that the Federal Reserve will stay its hand and leave interest rates on hold at the policy meeting.
The S&P 500 responded by adding 0.1 per cent while the tech-focused Nasdaq rose 0.3 per cent, but the Dow Jones Industrial Average fell 0.2 per cent.
DBS was the top gainer on the STI, rising a robust 1.6 per cent to $34.09. The other two local banks were also firmly in the black, with UOB gaining 1.3 per cent and OCBC advancing 1 per cent.
Meanwhile, Frasers Logistics and Commercial Trust was at the bottom of the blue-chip table. Its units shed 0.9 per cent to finish at $1.15. THE BUSINESS TIMES
