Singapore stocks close 0.3% higher after last-hour dip-buying on Wall Street

MARKETS may still be jittery about the upcoming interest rate hike from the US Federal Reserve, but a last-hour dip-buying in Wall Street which pushed US indices to reverse earlier declines has given Asian markets a lift.

Key gauges across the region ended in the black on Tuesday (Sep 20). Hong Kong’s Hang Seng Index rose 1.2 per cent, while in mainland China, Shenzhen’s Component Index went up 0.7 per cent, and the Shanghai Composite Index edged up 0.2 per cent.

South Korea’s Kospi closed 0.5 per cent higher, and Japan’s Nikkei 225 put on 0.4 per cent.

In Singapore, the benchmark Straits Times Index (STI) finished 0.3 per cent higher, gaining 10.63 points to 3,266.94. Gainers outnumbered losers 240 to 223, with about 875.1 million securities worth S$670 million changing hands.

As for the upcoming Federal Open Market Committee meeting, which will take place Wednesday overnight Asia time, Yeap Jun Rong, market strategist at IG, said that interest rate bets have ramped up due to the latest inflation data coming in higher than anticipated.

“So it is a basis of aligning policymakers’ views with current expectations. A 75 basis-point (bp) hike is fully priced, with an 18 per cent chance of a 100-bp increase scenario,” he said.

SEE ALSO

Malaysia: Shares close higher on Tuesday

“Being fairly aligned to expectations may suggest that much has been priced for now, which could be tapped on for some near-term relief before a series of Fed comments kicks in.”

Among STI constituents, Jardine Cycle & Carriage was the day’s top performer, gaining 2.4 per cent, or S$0.83 to S$36.17.

Emperador, which was recently added to the index, fell 1 per cent, or S$0.005 to S$0.505, emerging as the worst-performing index counter for the day.