[singapore] Shares on the Singapore bourse ended higher on Thursday (Mar 20), following the US Federal Reserve’s decision to hold off on interest-rate cuts on Wednesday. This move provided Asian markets with a breather and more room for certainty.
The Fed noted rising economic uncertainty, citing the impact of Donald Trump’s unpredictable tariff policies. As a result, policymakers decided to keep the key lending rate between 4.25 and 4.5 per cent.
In Singapore, the benchmark Straits Times Index (STI) advanced 22.18 points or 0.6 per cent to close at 3,930.49. Across the broader market, gainers outnumbered losers 286 to 243 after 1.1 billion securities worth S$1.4 billion changed hands.
However, markets across the region were mostly down. The Nikkei 225 slipped 0.3 per cent, the Bursa Malaysia Kuala Lumpur Composite Index fell 0.9 per cent and Hong Kong’s Hang Seng Index declined 2.2 per cent.
Australia’s ASX 200 was up 1.2 per cent and the Kospi gained 0.3 per cent.
On the STI, ST Engineering emerged as the top gainer, rising 5.2 per cent or S$0.34 to S$6.91. This surge follows analysts hiking their target prices, driven by a positive outlook and strong growth prospects for the company.
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DFI Retail Group fell the most, sliding 4.3 per cent or US$0.10 to US$2.23.
Meanwhile, all three local banks closed in positive territory. UOB was up 0.8 per cent or S$0.30 at S$37.80 and OCBC gained 0.8 per cent or S$0.14 to S$17.02 while DBS rose 0.4 per cent or S$0.20 to S$45.40.
Vishnu Varathan, Mizuho’s head of macro research for Asia ex-Japan, noted that the most significant impact from the Fed meeting was the recognition of symmetric risks from tariffs, shifting away from the previous focus on inflation concerns.
Nevertheless, he cautioned that “a patient Fed however is no assurance of contained risks as Fed-Asian central bank divergence and risk repricing amid mounting global trade tensions exacerbate underlying Asia ex-Japan vulnerabilities”.
