Singapore stocks rise after US-China talks breakthrough; STI edges up 0.1%

SINGAPORE - Local stocks finished the day higher after the United States and China on May 12 announced they would temporarily lower tariffs on each other’s products in a 90-day cool-off period.

On the Singapore Exchange, advancers beat decliners 371 to 209, as 1.4 billion securities worth $2.1 billion changed hands.

The benchmark Straits Times Index (STI) gained 0.1 per cent, or 4.89 points, to 3,881.05.

The index had earlier jumped after a joint statement by the US and China that they would pause the punitive reciprocal tariffs on each other’s products, cutting the existing duties by 115 percentage points.

UOB economists Alvin Liew and Ho Woei Chen said the announcement will likely pave the way for a more durable trade agreement between the US and China in 90 days.

“With the pause, (China’s) exporters are expected to resume front-loading of production and shipments to the US in the 90-day window, which would provide near-term boost to its economic outlook,” they said in a note.

Regional indexes were mixed. Hong Kong’s Hang Seng Index fell 1.9 per cent, while Japan’s Nikkei 225 rose 1.4 per cent. South Korea’s Kospi ended almost flat. The Bursa Malaysia Kuala Lumpur Composite Index increased 2.3 per cent.

Back home, the top gainer on the STI was maritime player Yangzijiang Shipbuilding, which leapt 4.2 per cent, or nine cents, to $2.21.

The index was dragged by technology and defence group ST Engineering, which lost 7.1 per cent, or 54 cents, to $7.09. This comes after the group posted on May 9 an 8 per cent rise in first-quarter revenue to $2.9 billion.

The three local banks gained ground on May 13. DBS Bank climbed 1.2 per cent to $44.23, UOB increased 1.6 per cent to $35.37, and OCBC Bank rose 0.7 per cent to $16.35. THE BUSINESS TIMES