Regional shares had a rather tame start to the week yesterday, given that the "phase one" trade deal between the US and China finally got the green light late last week.
The agreement struck last Friday suggested trade relations have turned the corner, but the devil is in the details and market watchers will want to see the finer points before they act.
That uncertainty left the Straits Times Index (STI) hovering around last Friday's close for most of the day before a late dip left it down 7.96 points, or 0.25 per cent, at 3,206.09.
Elsewhere in the Asia-Pacific, gains were recorded in Australia, China, and Taiwan. Hong Kong, Japan, Malaysia and South Korea posted losses, which traders said was down to profit-taking after stocks rallied ahead of the announcement of the interim deal.
Mr Vishnu Varathan, Mizuho Bank's head of economics and strategy for the Asia and Oceania treasury, said that while the "phase one" deal is "a trade disaster averted", it was "nowhere in the vicinity of a global trade breakthrough".
He added: "Of course, the optimists will argue that the tariffs planned for mid-October and mid-December being avoided is a big deal. And it is, given the propensity for global policy missteps."
Investors will be hoping for further details to emerge on top of Sunday's tariff suspension and roll-back of prior levies, together with China agreeing to buy more US agricultural produce and assuring the protection of intellectual property.
It was a low-volume session in Singapore, with trading clocking in at 958.13 million shares worth $827.87 million. Losers outpaced gainers 192 to 174.
The 27.9 million shares that changed hands made Yangzijiang Shipbuilding the STI's most active counter. It closed 2.7 per cent lower at $1.10. The local banks were mixed. OCBC Bank dipped 0.6 per cent to $10.91, DBS fell 0.5 per cent to $25.70, while United Overseas Bank added 0.2 per cent to $26.42.
With the US Federal Reserve putting interest rates on hold, investors have been rotating out of real estate investment trusts (Reits), which for most of the year have outperformed the broader market.
KGI Securities' head of Singapore research Joel Ng said Reits are unlikely to repeat this year's effort next year, so it is best to be picky.
The brokerage has recommended clients to pick up property trusts that benefit from secular trends like e-commerce-focused EC World Reit, unchanged at 76 cents, and data centre owner Keppel DC Reit, up 3.1 per cent to $2.01.
