Singapore stocks rise even as trade tariff fears hurt market sentiment in Asia; STI up 0.2%
With China hawks primed for top roles in incoming Trump administration and China’s booming trade surplus, resurgence of protectionist policies is expected, says analyst
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SINGAPORE stocks rose on Wednesday (Nov 13), even as the region braces itself for a new US administration that could implement stronger protectionist measures.
The Straits Times Index (STI) rose 0.2 per cent or 8.86 points to 3,720.34. Across the broader market, losers beat gainers 315 to 257, after 1.2 billion securities worth S$1.2 billion changed hands.
Most Asian markets ended in the red. Hong Kong’s Hang Seng Index slipped 0.1 per cent, Japan’s Nikkei 225 fell 1.7 per cent, and South Korea’s Kospi dropped 2.6 per cent.
SPI Asset Management managing partner Stephen Innes said that Asian stocks appear to be “rattled” by the prospect of fresh trade tariffs that could be implemented by the incoming Trump administration.
“With China hawks primed for top roles in his administration and China’s booming trade surplus flashing bright red, the market is bracing for a resurgence of protectionist policies,” he noted.
Innes added that investors have been paying close attention to the Chinese yuan, which has been depreciating against the US dollar. In particular, he is watching whether the US dollar/Chinese yuan rate will cross 7.25.
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“Cross that line, and it’s not just the yuan that gets shaky – global markets could feel the aftershocks, stoking fears of capital flight and sending tremors through the currency landscape.
“The People’s Bank of China’s daily fix might look subtle, but it’s anything but trivial,” he said.
On the STI, Thai Beverage was the top gainer. It rose 2 per cent or S$0.01 to S$0.52.
Frasers Logistics & Commercial Trust came in at the bottom of the table, shedding 3 per cent or S$0.03 to end at S$0.97. The counter began trading ex-distribution on Wednesday.
The trio of local banks closed mixed. DBS gained 1 per cent or S$0.44 to S$42.78, while OCBC was up 0.6 per cent or S$0.09 at S$16.26. UOB fell 0.1 per cent or S$0.03 to S$35.50.
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