Singapore stocks climb on weak US jobs data, rate-cut expectations; STI up 0.2%
Key regional bourses end mixed – up in South Korea, Japan and Malaysia, and down in China
[SINGAPORE] Stocks on the Singapore Exchange (SGX) rebounded on Thursday (Sep 4), tracking a mixed performance in Asian markets amid weak US jobs data and growing rate-cut expectations.
The Straits Times Index (STI) rose 0.2 per cent, or 7.5 points, to 4,296.83. Across the broader market, decliners beat advancers 267 to 255, after 1.6 billion securities worth S$1.3 billion changed hands.
Elsewhere in the region, key indices were mixed. South Korea’s Kospi rose 0.5 per cent, Japan’s Nikkei 225 gained 1.5 per cent and Malaysia’s KLCI finished flat.
Meanwhile, Chinese markets underperformed amid news reports that regulators may impose fresh curbs on stock market speculation. Hong Kong’s Hang Seng Index fell 1.1 per cent, and the Shanghai Composite Index slipped 1.3 per cent.
Markets, however, continued to be swayed by US rate-cut expectations and broader concerns over trade tariffs.
Federal Reserve governor Christopher Waller reiterated his call for an interest-rate cut in September, citing a weakening labour market. He also noted that the pace of further cuts would depend on incoming economic data.
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Such rate cuts and slower economic growth in the US point to stronger Asian currencies. This makes hedging USD exposures increasingly relevant for Asia-based investors, said Eastspring Investments chief economist Ray Farris and multi-assets portfolio manager Nupur Gupta in a note on Thursday.
Looking ahead, they expect tariffs to pose an increasing challenge to growth.
“The economic drag from the tariffs on the US will become more pronounced and the ultimate impact on company margins and US inflation could be a potential source of market volatility,” they said.
The pair described the Singapore equity market as “a relatively defensive lower beta market which offers attractive valuations and high dividend income from real estate investment trusts and the banks.”
On the STI, technology solutions provider Venture Corp was the top gainer. It rose 2.2 per cent or S$0.29 to S$13.58.
Frasers Centrepoint Trust came in at the bottom of the table, shedding 1.7 per cent or S$0.04 to S$2.32.
The trio of local banks closed higher. DBS gained 0.3 per cent or S$0.14 to S$50.54, OCBC rose 1.1 per cent or S$0.18 to S$16.98 and UOB was up 0.6 per cent or S$0.20 at S$35.76.
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