SINGAPORE: Singapore stocks fell as trading began on Friday (Dec 13) after China stepped up its efforts to support the economy in response to growing trade tensions with the United States. The Straits Times Index (STI) dropped 0.2%, or 5.72 points, to 3,803.55 at 9:01 am, The Business Times reported.
In the broader market, 40 stocks declined while 29 gained, with 21.4 million securities valued at S$34.8 million traded.
Genting Singapore led in trading volume, gaining 1.3%, or S$0.01, to S$0.78, with 2.9 million shares traded. Thai Beverage fell by 0.9%, or S$0.005, to S$0.565, while Mapletree Logistics Trust units dropped 0.8%, or S$0.01, to S$1.26.
The three major local banks showed mixed results as trading began. UOB declined 0.6%, or S$0.22, to S$37.03, while OCBC slipped 0.2%, or S$0.03, to S$16.77. DBS remained unchanged at S$43.80.
Chinese and Hong Kong stocks rebounded strongly on Thursday, with Chinese blue-chip stocks on track for a third straight weekly gain, a streak that has not occurred since May, unless there is a drop of 1.4% or more on Friday.
China wrapped up its Central Economic Work Conference on Thursday and pledged to raise the budget deficit, increase borrowing, and ease monetary policy to support stable economic growth. This is to address the growing trade tensions with the US as President-elect Donald Trump prepares to take office.
The Chinese yuan weakened slightly against the US dollar, falling 0.03% to 7.2637 after trading between 7.2565 and 7.2677, with China considering a weaker yuan to cope with the risk of US trade tariffs.
Meanwhile, Wall Street stocks ended lower on Thursday after US wholesale inflation rose more than expected by 0.4% last month, up from 0.3% in October. Despite this, markets still expect the US Federal Reserve to cut interest rates later this month.
The Nasdaq Composite Index fell 0.7% to 19,902.84, after briefly surpassing 20,000 on Wednesday. The Dow Jones Industrial Average also dropped 0.5% to 43,914.12, while the S&P 500 retreated 0.5% to 6,051.25.
In Europe, stocks also ended lower on Thursday after the European Central Bank cut interest rates by 25 basis points, as expected, and hinted at further easing to support the struggling economy amid political uncertainties.
The pan-European Stoxx 600 index slipped 0.1% to 519.2 points, though eurozone bank shares gained 0.3%. /TISG
Read also: Singapore stocks fell as trading began on Thursday—STI slipped 0.1%
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