STI up 0.3% ahead of details from US Fed's July meeting

Local investors sent shares slightly higher yesterday as they hunted for opportunities ahead of the release of the United States Federal Reserve's July meeting minutes.

Some positive news on the economic front also lifted optimism, including data from Enterprise Singapore showing that key exports last month expanded for the 20th consecutive month.

The result was a modest rise in the Straits Times Index (STI) of 0.3 per cent, or 8.97 points, to 3,262.76. Gainers outnumbered losers 256 to 208, with 1.2 billion shares worth $1.1 billion changing hands.

Saxo Bank's Asia-Pacific strategy team analysts said the Fed's comments will be watched closely for hints on the expectation for an interest rate increase next month.

"The hot jobs report and the cooling inflation number have further confused the markets since the Fed meeting, even as Fed speakers continue to push against any expectations of rate cuts, at least in early 2023," they said in a note.

Jardine Cycle & Carriage was the top gainer on the local bourse, adding 3 per cent to $31.90.

Venture Corp was another top gainer, rising 0.9 per cent to $18.40.

The trio of local lenders ended the day mixed. OCBC Bank was one of the biggest gainers, up 0.9 per cent to $12.29, but DBS Bank and UOB were among top decliners. DBS slipped 0.2 per cent to $32.25, while UOB shed 0.1 per cent to $26.85.

The modest increase here followed a mixed session on Wall Street overnight with the Dow Jones Industrial Average up 0.7 per cent while the S&P 500 added 0.2 per cent, but the tech-heavy Nasdaq closed 0.2 per cent lower.

That set the stage for a similar day across the region.

The Nikkei 225 in Tokyo rose 1.2 per cent, the Hang Seng in Hong Kong was up 0.5 per cent and the ASX 200 in Sydney rose 0.3 per cent to finish at a 10-week high.

Malaysian shares ended the day largely unchanged, while the Kospi in Seoul fell 0.7 per cent.