Singapore shares close higher amid softer US job growth; STI up 0.5%

[SINGAPORE] Singapore stocks ended higher on Friday (Jul 3), as softer job growth in the US dented expectations of a US Federal Reserve rate hike.

The benchmark Straits Times Index (STI) gained 0.5 per cent or 27.14 points to finish at 5,244.29.

Yangzijiang Shipbuilding led the gainers on Singapore’s blue-chip index, rising 3.2 per cent or S$0.11 to S$3.56.

The worst performer among STI constituents was Sembcorp Industries , falling 3.4 per cent or S$0.21 to close at S$5.98.

The three local banks all ended higher. DBS gained 0.5 per cent or S$0.33 to S$66.76, OCBC rose 0.9 per cent or S$0.23 to S$25.31, and UOB was up 0.4 per cent or S$0.17 at S$40.24.

Within the iEdge Singapore Next 50 Index, ValueMax was the top gainer, rising 6.9 per cent or S$0.06 to finish at S$0.93, while Golden Agri-Resources was the biggest loser, falling 1.9 per cent or S$0.005 to end the session at S$0.265.

Across the broader market, gainers beat losers 384 to 177, after 1.2 billion securities worth S$1.7 billion changed hands.

Key regional indices were positive. Hong Kong’s Hang Seng Index gained 1.3 per cent, Japan’s Nikkei 225 index rose 1.5 per cent, South Korea’s Kospi was up 5.8 per cent and the FTSE Bursa Malaysia KLCI advanced 1 per cent.

“US job growth slowed sharply in June, with payroll gains falling well short of expectations and hiring weakening across key sectors,” said David Kohl, chief economist at Julius Baer.

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“This reassessment of the state of the US labour market increases our confidence that the Fed will keep interest rates on hold until at least 2027, particularly when lower oil prices allow inflation to fall.”

This article has been written with the assistance of AI and reviewed by a reporter