Asian markets dip on Friday; STI ends 0.82% lower
ASIAN markets ended the week in the red, as rising US Treasury bond yields stoked inflation fears and caused a sharp overnight fall in Wall Street technology shares.
Across the region, Tokyo's Nikkei 225 Index fell 3.99 per cent or 1,202.26 points to close at 28,966.01. In South Korea, the benchmark Kospi closed 2.80 per cent or 86.74 points down at 3,012.95.
Chinese markets also ended Friday lower. The Hang Seng Index slipped 3.64 per cent or 1,093.96 points to close at 28,980.21, while the Shanghai Composite Index ended 2.12 per cent or 75.97 points lower at 3,509.08.
On the local bourse, the benchmark Straits Times Index (STI) also declined, falling 0.82 per cent or 24.50 points to end at 2,949.04.
Said Jeffrey Halley, senior market analyst, Asia-Pacific, at Oanda: "With Wall Street setting the myopic inflation-watching tone, it is no surprise that Asia has followed suit and headed directly to jail without passing go."
Among the STI constituents, Yangzijiang Shipbuilding emerged as top performer for the day, gaining 0.94 per cent or S$0.01 to close at S$1.07.
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Local lender UOB was also among the few that made gains on Friday. The counter inched up 0.12 per cent or S$0.03 to close at S$24.68.
Meanwhile, Dairy Farm ended at the bottom of the index, falling 3.13 per cent or US$0.14 to end at US$4.33.
Overall, decliners outnumbered advancers 334 to 196 for the day, with 2.82 billion securities worth S$2.35 billion changing hands.
In a market commentary on Friday, OCBC Investment Research noted that the rising yields "can be seen as optimism for the economy, so investors are rotating into areas of the market that would benefit from an economic reopening the most".
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