STI dips 0.1% as Asian markets tumble amid rising yields

Local shares eased lower yesterday to mirror the sea of red across major Asian markets.

The slide tracked overnight losses on Wall Street, where the S&P 500 fell 1.5 per cent while the tech-rich Nasdaq Composite plunged 3 per cent amid a spike in treasury yields.

The Straits Times Index (STI) followed suit, slipping 0.1 per cent or 3.12 points to 3,134.54.

Overall, gainers outnumbered losers 243 to 234, with 2.54 billion shares worth $2.47 billion changing hands.

The STI was up 1.3 per cent for the week - its fourth consecutive week of gains. At least its effort yesterday was better than that of other regional indexes.

Japan's Nikkei and the Hang Seng in Hong Kong both fell 1.4 per cent. South Korea's Kospi finished 0.9 per cent lower while Australia's ASX 200 dipped 0.6 per cent.

"With commodities ex-oil holding up despite a stronger US dollar and steeper yield curves positive for banking sector profitability, Asean and Australian markets - to a lesser extent - should continue to outperform," said Oanda senior market analyst Jeffrey Halley.

North Asian markets remained "highly susceptible to large-scale retail flows ... and dominated by technology behemoths", he added.

Jardine Strategic was one of the top STI gainers, rising 1.7 per cent to US$33.87 - above the US$33 offer from Jardine Matheson.

The Securities Investors Association (Singapore) said on Thursday that it is arranging for individual shareholders of Jardine Strategic who are against the acquisition to connect with institutional shareholders to be collectively represented by Bermuda lawyers.

Two local banks were among the gainers, with DBS rising 0.5 per cent and OCBC advancing 0.2 per cent. UOB fell 0.16 per cent.

CapitaLand Integrated Commercial Trust was at the bottom of the index, down 2.7 per cent to $2.18.