SINGAPORE stocks closed lower on Wednesday (Jan 22) following a mixed picture in other Asian markets, after US President Donald Trump said that his administration was discussing a 10 per cent punitive duty on Chinese imports.
Trump did not provide specific plans on the universal tariffs and additional surcharges on close trade partners as previously promised, but said that he was thinking about imposing duties on Canadian and Mexican goods as early as Feb 1.
The Straits Times Index (STI) ended 0.4 per cent or 14.16 points lower at 3,781.21.
On the STI, maritime vessel maker Yangzijiang Shipbuilding was the top gainer. It rose 3.8 per cent or S$0.11 to S$3.
In-flight caterer and ground handler Sats came in at the bottom of the index, shedding 2.8 per cent or S$0.10 to S$3.52.
The trio of local banks ended the day mixed. DBS declined 0.5 per cent or S$0.21 to S$43.32, OCBC slipped 0.1 per cent or S$0.02 to S$17.03 and UOB was up 0.5 per cent or S$0.19 at S$37.01.
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Across the broader market, losers outnumbered gainers 280 to 205, after 1.3 billion securities worth S$1.2 billion changed hands.
Chinese stocks were in the red amid the threat of tariffs. Hong Kong’s Hang Seng Index fell 1.6 per cent, and the Shanghai Composite was down 0.9 per cent.
Elsewhere in the region, key indices ended higher. Japan’s Nikkei 225 gained 1.6 per cent while South Korea’s Kospi Composite Index rose 1.2 per cent and the Bursa Malaysia Kuala Lumpur Composite Index was up 0.5 per cent.
Eastspring Investments, in its latest Q1 2025 market outlook, cautioned that China’s growth slowdown, along with its impact on global growth, may persist for an extended period. Despite the recent stimulus measures, China’s weak domestic demand and fragile private sector sentiment are unlikely to provide a significant boost to global growth in the near term.
“Looking ahead, should the US economy experience a notable slowdown, global growth will likely lose a crucial driver of global demand, which China may not be capable of replacing immediately,” it added.
The report also highlighted that inflationary risks are expected to persist in 2025, driven by a still-resilient US economy, a strong labour market, and the continuation of pro-growth and deregulation policies from the Trump administration.
