Local shares headed south yesterday against a backdrop of an escalating United States-China spat and downbeat data.
The sombre mood sent the Straits Times Index (STI) inching down 6.6 points, or 0.26 per cent, to 2,555.34.
Key gauges across the region were also in the red, while Taiwan and South Korea bucked the general downward trend, as hopes over the reopening of economies were tempered by geopolitical worries and more ugly trade figures.
Hong Kong retreated 0.5 per cent, the Shanghai Composite Index fell 0.6 per cent and Shenzhen stocks lost 1 per cent, while Japan was down 0.21 per cent.
But South Korea closed up 0.44 per cent and Taiwan rose 0.92 per cent, buoyed by tech stocks.
Australian shares were hit as well, falling 0.4 per cent. Rising tensions with China unsettled investors and raised concerns over possible tariffs on iron ore exports, after barley and beef exports were targeted earlier this week.
The falls were in stark contrast to overnight gains logged by Wall Street's three key indexes, which were led by expectations of more stimulus from the Federal Reserve.
Phillip Futures analyst Samuel Siew said: "With the war of words between the two sides (US and China) unlikely to subside any time soon, eyes will be towards whether the current tensions will escalate beyond trade, and should they (do so), there will be more downside pressure for global indices."
Japan and South Korea released disheartening export data as the pandemic continued to hit production and wipe out orders amid widespread shutdowns.
On the home front, 1.48 billion shares worth $1.09 billion were traded, with gainers pipping losers 200 to 195.
The index's big losers included Hongkong Land Holdings, which fell 2.3 per cent to US$3.78, while Wilmar International slipped 1.6 per cent to $3.81.
Geo Energy Resources lost 2.13 per cent to 13.8 cents. The coal miner launched a consent solicitation and tender offer for its notes coming due in 2022, as falling oil prices have hurt coal demand outlook, exacerbating the company's challenges.
Oceanus Group was the day's most active counter, with 105 million shares worth $393,000 traded.
The stock jumped 150 per cent to 0.5 cents after the abalone producer said its partnership with Season Hong International Trading, a leading regional distributor, drew $13.7 million in confirmed orders and $7 million in revenue within the first 60 days of operations.
