Surge in global Covid-19 cases weighs on Asia

Shares in Singapore fell alongside those in most Asian equity markets yesterday, following a surge in global coronavirus cases.

Optimism from hopes of a vaccine and the European Union recovery fund, which fuelled Tuesday's gains, was dented by US President Donald Trump's comments on the gravity of the pandemic.

He said the Covid-19 pandemic in the United States will "get worse before it gets better" as the country registered more than 140,000 deaths from the virus.

OCBC Investment Research said US Secretary of State Mike Pompeo's comments - that the US wants to build a global coalition to counter China - also weighed on the markets; he accused China of exploiting the pandemic to further its own interests.

The Straits Times Index (STI) fell 34.92 points, or 1.3 per cent, to 2,594.53. Decliners outpaced advancers 314 to 163, as 1.55 billion shares worth $1.15 billion changed hands.

None of the 30 STI constituents registered gains for the day. CapitaLand Commercial Trust, CapitaLand Mall Trust, Genting Singapore and Mapletree Industrial Trust ended the day unchanged.

At the bottom of the STI table were Dairy Farm International, which fell 3.4 per cent to US$4.26, and Singtel, which declined 2.4 per cent to $2.48.

Thai Beverage remained the most heavily traded counter, with more than 41 million shares changing hands. Its shares fell 2.3 per cent to 64.5 cents, leaving the counter among the STI's bottom three.

Local lenders ended the day lower, following a DBS Group Research report after trading hours on Tuesday that had said dividend cuts by Singapore banks may happen "as early as" the upcoming payout to be announced for the second quarter.

DBS fell 1.5 per cent to $21.08, UOB declined 1.4 per cent to $20.40, and OCBC Bank slipped 1.4 per cent to $9.80.

Elsewhere in the region, South-east Asian stock markets wavered through the session, with investors on edge as US lawmakers struggled to agree on terms for more fiscal support for the economy.

Hong Kong stocks fell the most in nearly six weeks, as signs of escalating Sino-US tensions weighed on market sentiment. At the close of trade, the Hang Seng index was down 2.25 per cent at 25,057.94, its biggest fall since June 11.