Singapore stocks up despite weak Asian sentiment; STI up 0.3%

THE Straits Times Index rose 0.3 per cent or 10.53 points to 3,218.28 on Monday (Sep 11) despite weak market sentiment in Asia. Across the broader market, gainers beat losers 280 to 271 after 1.1 billion securities worth S$680.2 million changed hands.

Major Asian markets were mixed on Monday. Japan’s Nikkei 225 index shed 0.4 per cent, while Hong Kong’s Hang Seng Index fell 0.6 per cent and South Korea’s Kospi rose 0.4 per cent.

IG market analyst Yeap Jun Rong said that Asian markets may have been digesting Bank of Japan (BOJ) governor Kazuo Ueda’s comments over the weekend. Ueda said that the BOJ could have enough data by year-end to decide if it can end ultra-loose monetary policies.

Yeap noted that the governor might have been laying the groundwork for further policy normalisation ahead, but that he was also quick to downplay some speculation by calling for patience.

He added that the governor’s hawkish tone may also have lifted Japan’s 10-year yields to another new high since 2014, narrowing the yield differential with the US. “That said, with the next BOJ meeting scheduled to be less than two weeks away, there may still be room for disappointment for near-term hawkish bets, given that the governor’s comments seem to place any rate decision only in 2024, along with the less likelihood of back-to-back policy tweaks given its broadly patient stance,” he said.

Among STI stocks, CapitaLand Ascendas Reit was at the top of the table, gaining 1.1 per cent or S$0.03 to S$2.81.

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The trio of local banks were also in the black. Both DBS and OCBC gained 0.8 per cent, while UOB gained 0.5 per cent.

Meanwhile, Hongkong Land was the biggest loser, shedding 3.3 per cent or US$0.12 to US$3.52.