SINGAPORE'S benchmark Straits Times Index (STI) slipped back to under 3,000 on Monday, closing at 2,990.40 points, 14.47 points or 0.48 per cent lower.

This was in spite of the Republic's December non-oil domestic exports registering a 6.8 per cent gain year on year, and having beaten market expectations.

DBS Group Research noted the uncertainties surrounding new virus strains and vaccine acceptance rate by the public, as well as near-term uncertainty as results season for the fourth quarter starts. The research house sees the STI having a near-term upside cap at 3,050.

Singapore Airlines (SIA) came in as the worst STI performer as it shed 2.51 per cent to S$4.28, amid a worsening global pandemic. However, the national carrier is on the way to be possibly the world's first vaccinated international airline, with Singapore on Monday starting to roll out full-scale vaccination for frontline aviation workers.

AEM Holdings, which has launched a S$99.7 million buyout bid for mainboard-listed contract manufacturer CEI, continues its upward trajectory by 3.3 per cent to reach S$4.04 at the closing bell.

Fu Yu Corp was one of the most heavily traded stocks with over 222 million shares changing hands. It experienced a 10.7 per cent increase in its share price to S$0.31 before it requested a trading halt at about 4.30pm. This followed a query from the Singapore Exchange on "unusual price and volume movements" in its shares.

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Decliners outnumbered gainers 245 to 239 on the broader market, with 2.77 billion securities worth S$1.32 billion traded.

China's generally favourable macro data gave the Shanghai Composite Index a lift by 0.84 per cent to 3,596.22 points, while neighbouring Hong Kong's Hang Seng index rose 1.01 per cent to 28,862.77 points.

However, other regional markets were lower. Japan's Nikkei 225 declined 0.97 per cent to 28,242.21, while South Korea's Kospi dropped 2.33 per cent to 3,013.93.

Australia's S&P/ASX 200 was 0.78 per cent lower at 6,663.04, and the FTSE Bursa Malaysia Kuala Lumpur Composite Index closed at 1,609.52 or 1.08 per cent lower.