STI falls 0.6%, taking its cue from Wall Street’s overnight losses

SINGAPORE shares buckled under selling pressure, tracking overnight losses in Wall Street as latest robust jobs data out of the world’s largest economy compounded fears of aggressive rate hikes by the US Federal Reserve.

The key Straits Times Index slipped 17.66 points or 0.55 per cent to 3,221.67 after US stocks logged their third straight day of losses on more hawkish posturings by Fed officials as fears heightened over a slowing global economy. China’s latest purchasing managers’ index (PMI) showed factory activity extending its decline in August owing to Covid-19 curbs, its property crisis and the worst heatwaves in decades.

Key gauges in Japan, China and Australia fared none the better, closing lower, while indices in Hong Kong, Taiwan, South Korea and Malaysia finished higher. The mixed showing comes ahead of key inflation data set to be released by the Eurozone, which most expect to be worrisome and will pile on recession woes.

Geopolitical tensions add to the bulging bucket of worries. “Rising tensions between China and Taiwan remain a headwind for risk sentiment... with Taiwan firing warning shots at a Chinese drone for the first time ever. While further escalation could be the less-likely scenario, the lingering uncertainty of potential retaliation could still drive some paring of risks until greater clarity is presented,” said IG market strategist Yeap Jun Rong.

Some 2.06 billion units worth S$1.89 billion were traded in the local bourse. Losers outpaced gainers with 269 counters down, and 251, up.

Keppel Corp shares climbed following news that its infrastructure arm is developing Singapore’s first hydrogen-ready power plant, which will cost S$750 million. The counter closed at S$7.27 after gaining S$0.08 or 1.11 per cent.

SEE ALSO

US: Wall Street shares end lower for third day

Asia: Markets down again as traders eye more monetary tightening

Hong Kong: Stocks finish flat

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China Everbright Water said it has bagged a 30-year concession agreement for a waste-water treatment plant in the Luozhuang Economic Development Zone in Linyi city in Shandong province. The project will require an investment of about 259.41 million yuan (S$52.5 million). The stock finished the day at S$0.275, up S$0.01 or 3.77 per cent.