The three-day winning streak here snapped yesterday after the vaccine-led rally had a much-needed reality check. The Straits Times Index (STI) fell 19.39 points, or 0.75 per cent, to 2,561.94, leaving it down by just over 20 per cent since Jan 1.
While 20 of the STI's 30 constituents lost ground, overall there were 217 gainers against 207 losers on trade of 1.48 billion shares worth $1.16 billion.
Risk appetites took a step back yesterday as doubts emerged over Moderna's vaccine, crushing hopes that had fuelled euphoria across the markets earlier this week.
The directionless trading on Wall Street overnight was an added dampener, and Singapore's announcement on Tuesday that circuit breaker restrictions will be lifted in three phases beginning on June 2 failed to boost the mood.
Risks from United States-China tensions also persist.
AxiCorp global chief market strategist Stephen Innes said: "Just as lockdowns are starting to ease, tensions between the US and China look set to spoil whatever little was going to be left of a reprieve.
"As with the tariff spat last year, the economic impact isn't just confined to the two combatants: smaller economies across Asia are often equally, if not more, exposed - certainly not what the global economy needs now."
Key gauges across much of the region posted gains, including in Japan, Hong Kong, South Korea and Taiwan, although China's indices closed lower. Japan climbed 0.79 per cent, Hong Kong added 0.05 per cent and South Korea gained 0.46 per cent. But Shanghai shares fell 0.51 per cent while Shenzhen slipped 0.97 per cent.
Losses in Singapore were led by Jardine Matheson, which fell 2.4 per cent to US$42.82, while OCBC Bank retreated 0.9 per cent to $8.92.
The day's most active was Secura Group, with 64 million shares changing hands. The counter rose 21 per cent to 8.2 cents. In a response to a query from SGX RegCo, Secura said it was unaware of any information which might explain the unusual volume movements.
Thai Beverage fell 0.8 per cent to 65.5 cents. OCBC Investment Research has downgraded the stock to "hold" on the back of waning sales and social distancing in Thailand.
UG Healthcare bucked the trend to add 6.3 per cent to reach 34 cents. The Catalist-listed firm said on Tuesday night that its gloves and ancillary products were chalking up higher orders amid the pandemic and its facilities were operating at "optimum production efficiency".
