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The Star
3 days ago
- Business
- The Star
Singapore hits record high for 14th session, sets the pace for Asian equities
A file photo of the SGX Centre in Singapore. — Bloomberg Singapore's equity benchmark scaled an all-time high for the 14th consecutive session on Monday, buoyed by strong inflows to high-yield stocks, while bourses elsewhere in emerging Asia also began the week on a largely positive note. Most regional currencies slid against the U.S. dollar: the Indonesian rupiah and the Philippine peso weakened about 0.4% each, while South Korea's won, Taiwan's dollar, and Thai baht slipped marginally. An MSCI gauge of global emerging market currencies also declined, now down more than 1% since hitting an all-time high on July 3. Singapore's FTSE Straits Times Index climbed for an 11th consecutive session, its longest winning streak on record, and rose as much as 0.9% to 4,225.790 points. The benchmark index was driven by a rally in banks, telecoms, and industrial firms. Analysts say the city-state's equity market has emerged as a relative safe-haven asset amid rising global risks, with ample liquidity, a strong local currency, and low interest rates boosting appetite for attractive dividend yield. "Low interest rates and a lack of alternative yield instruments are likely to continue supporting market activity (in Singapore)," DBS analysts said, adding that a recovery in wealth management will offer medium-term tailwind for Singapore banks. Defensive stocks are gaining appeal among global investors who seek stability amid ongoing uncertainty over U.S. trade policy and macroeconomic challenges. Singapore's economy also surprised to the upside last week, reporting faster-than-expected second-quarter growth and a 13% jump in exports for June, further reinforcing bullish sentiment. Across the rest of Southeast Asia, equities held largely firm: Indonesia's benchmark index jumped as much as 1% and continued to hover around its mid-December 2024 highs, while stocks in Manila and Seoul climbed 0.7% and 0.4%, respectively. The MSCI index of equities in emerging Asia slipped 0.2%, but has gained more than 2% this month, outperforming the broader Asia-Pacific equities index, which includes Japan, which is up only 0.3%. After last week's rate cut in Indonesia, markets are now waiting for the next catalyst, most likely growth data due early next month, said Fakhrul Fulvian, chief economist at Trimegah Securities. He warned that the absence of near-term triggers could cap further upside. Thailand's SET Index climbed nearly 1% but turned negative within an hour of opening. The gauge has risen more than 10% so far this month, outperforming its regional peers after clocking deep losses in the first half. Investors in Asia continue to keenly scrutinise tariff headlines ahead of an August 1 deadline to strike a deal with Washington. Local sentiment has improved after Vietnam and Indonesia reached an agreement on export levies, although final details are yet to be confirmed. In the Philippines, President Ferdinand Marcos Jr is set to visit the United States this week to secure a trade agreement with Washington. The U.S. earlier this month raised tariffs on exports to 20%, up from 17% threatened in April. HIGHLIGHTS: ** Indonesian 10-year benchmark yield falls 2.9 bps to 6.522% ** ST Engineering and DBS at record high, Singtel at mid-August 2016 high ** South Korea reviews various options to improve North Korea ties ** Japan's shaky government loses upper house control - Reuters
New Straits Times
3 days ago
- Business
- New Straits Times
Singapore hits record high for 14th session, sets the pace for Asian equities
SINGAPORE: Singapore's equity benchmark scaled an all-time high for the 14th consecutive session on Monday, buoyed by strong inflows to high-yield stocks, while bourses elsewhere in emerging Asia also began the week on a largely positive note. Most regional currencies slid against the US dollar: the Indonesian rupiah and the Philippine peso weakened about 0.4 per cent each, while South Korea's won, Taiwan's dollar, and Thai baht slipped marginally. An MSCI gauge of global emerging market currencies also declined, now down more than 1 per cent since hitting an all-time high on July 3. Singapore's FTSE Straits Times Index climbed for an 11th consecutive session, its longest winning streak on record, and rose as much as 0.9 per cent to 4,225.790 points. The benchmark index was driven by a rally in banks, telecoms, and industrial firms. Analysts say the city-state's equity market has emerged as a relative safe-haven asset amid rising global risks, with ample liquidity, a strong local currency, and low interest rates boosting appetite for attractive dividend yield. "Low interest rates and a lack of alternative yield instruments are likely to continue supporting market activity (in Singapore)," DBS analysts said, adding that a recovery in wealth management will offer medium-term tailwind for Singapore banks. Defensive stocks are gaining appeal among global investors who seek stability amid ongoing uncertainty over US trade policy and macroeconomic challenges. Singapore's economy also surprised to the upside last week, reporting faster-than-expected second-quarter growth and a 13 per cent jump in exports for June, further reinforcing bullish sentiment. Across the rest of Southeast Asia, equities held largely firm: Indonesia's benchmark index jumped as much as 1 per cent and continued to hover around its mid-December 2024 highs, while stocks in Manila and Seoul climbed 0.7 per cent and 0.4 per cent, respectively. The MSCI index of equities in emerging Asia slipped 0.2 per cent, but has gained more than 2 per cent this month, outperforming the broader Asia-Pacific equities index, which includes Japan, which is up only 0.3 per cent. After last week's rate cut in Indonesia, markets are now waiting for the next catalyst, most likely growth data due early next month, said Fakhrul Fulvian, chief economist at Trimegah Securities. He warned that the absence of near-term triggers could cap further upside. Thailand's SET Index climbed nearly 1 per cent but turned negative within an hour of opening. The gauge has risen more than 10 per cent so far this month, outperforming its regional peers after clocking deep losses in the first half. Investors in Asia continue to keenly scrutinise tariff headlines ahead of an August 1 deadline to strike a deal with Washington. Local sentiment has improved after Vietnam and Indonesia reached an agreement on export levies, although final details are yet to be confirmed. In the Philippines, President Ferdinand Marcos Jr is set to visit the United States this week to secure a trade agreement with Washington. The US earlier this month raised tariffs on exports to 20 per cent, up from 17 per cent threatened in April.
New Straits Times
24-04-2025
- Business
- New Straits Times
Asia FX range-bound, equities' rally fades on mixed US tariff signals
KUALA LUMPUR: Emerging Asian currencies traded in a tight range on Thursday, while a relief rally in equities began to lose steam as investors grew more cautious on conflicting signals from the US administration over its stance on China tariffs. The dollar paused its rally after a sharp rebound sparked by US President Donald Trump's retreat from threats to dismiss Federal Reserve Chair Jerome Powell and his administration's conciliatory tone on China tariffs. The unpredictability of US trade policy has created a new reality for investors, where abrupt policy shifts have made short-term market forecasts increasingly difficult, dampening appetite for emerging market assets. There would be some element of caution prevailing among traders, with the dollar stabilising and investors seeking currency alternatives within the G10 space rather than in emerging Asia, said Shaun Lim, FX strategist at Maybank. In emerging Asia, the Philippine peso and Singapore dollar each inched 0.1 per cent higher, while the Taiwan dollar and South Korean won eased 0.1 per cent and 0.2 per cent, respectively. In Malaysia, the central bank governor said the nation would need to revise its annual growth forecast downward due to tariff and trade uncertainties. The country faces a 24 per cent tariff in July on its exports to the US unless a deal is struck between the two countries. The ringgit edged up around 0.1 per cent, while shares in Kuala Lumpur traded 0.3 per cent higher. The Indonesian rupiah drifted lower a day after the central bank delivered an expected hold on interest rates to maintain the currency's exchange rate stability. Stocks in Jakarta rose 1 per cent to hit their highest point since mid-March. Beyond the looming threat of a 32 per cent US tariff, Southeast Asia's largest economy is also grappling with sluggish consumer demand and disappointing state revenue collection, which have together compelled the government to rein in spending. Fakhrul Fulvian, an analyst with Trimegah Securities, said Bank Indonesia would continue assessing volatility in the rupiah before making any decision on a rate cut. "We continue to eye urgency to lift up GDP growth by providing liquidity to the real economic sector." Among other share markets, benchmark indexes in the Philippines and Taiwan fell 0.1 per cent and 0.5 per cent, respectively, while equities in Singapore were on track for an eighth consecutive session of gains.
