STI slips 0.3% as Fed hikes rates

Other Asian markets also suffer losses, with the Sydney and Tokyo benchmarks slumping to new lows

Published Thu, Dec 20, 2018 · 09:50 PM

SINGAPORE stocks tracked Wall Street losses on Thursday after the US Federal Reserve hiked interest rates for the fourth time this year.

The Straits Times Index was down as much as 0.56 per cent or 16.98 points at 3,041.67 on Thursday morning but pared losses later in the day. It finished 0.3 per cent lower, or 8.03 points, to 3,050.62.

In a widely anticipated move, the US central bank raised the target range for its benchmark funds rate from 2.25 per cent to 2.5 per cent. However, investors had hoped for a softer approach amid a host of issues - from US-China trade to a slowing Chinese economy - weighing on global growth prospects. The Fed also trimmed the number of rate hikes projected in 2019 from three to two, but markets had been priced for just one hike next year.