STI pushes up, mirroring regional indexes, on US deals with trading partners

SINGAPORE – News of more deals between the US and its trading partners gave share markets here and across the region a shot of adrenaline on July 23.

While most details remain to be seen, the agreements struck with the Philippines and Indonesia did spur local investors to push the Straits Times Index (STI) up 0.6 per cent or 23.02 points to 4,231.28. Gainers were far in the ascendancy, trouncing losers 427 to 164 on robust trade of 2.4 billion shares worth $1.7 billion.

Key regional markets were in the same mood: The Kospi in Seoul gained 0.4 per cent; Japan’s Nikkei 225 surged 3.5 cent on news that a similar trade pact was in the offing; and Hong Kong’s Hang Seng closed up 1.6 per cent.

Australian stocks rose 0.7 per cent on the back of the trade deals, the same rise recorded by Malaysian shares.

The regional gains followed a mixed session on Wall Street overnight, despite assurances that Federal Reserve chair Jerome Powell could finish out his term if he wishes.

The S&P 500 rose 0.1 per cent to another record high, the Dow Jones Industrials added 0.4 per cent while the Nasdaq slipped 0.4 per cent from its July 21 record as doubts creep in to the tech sector.

Interactive Brokers senior economist Jose Torres noted that the fading momentum of tech stocks is starting to weigh on US benchmarks, but the wider American market remains positive.

He added that the overreliance on the Magnificent Seven tech firms – Apple, Alphabet, Microsoft, Amazon, Tesla, Meta and Nvidia – is contributing to the market turning defensive.

Meanwhile, DFI Retail Group was the STI’s top gainer, adding 9.2 per cent to US$3.45, while ST Engineering led the losers, down 2.1 per cent to $8.27.

The trio of local banks closed higher: DBS Bank put on 1.9 per cent to $48.13; UOB rose 0.6 per cent to $37.23; and OCBC Bank advanced 0.1 per cent to $17.21.

THE BUSINESS TIMES