Analyst says a dip in Treasury yields overnight and a pause in the US dollar rally led market participants to take the chance to load up on risks
SINGAPORE stocks ended higher on Wednesday (Oct 9), tracking overnight gains on Wall Street.
The benchmark Straits Times Index (STI) rose 0.6 per cent or 19.97 points to 3,595.66. But across the broader market, losers outnumbered gainers 309 to 255, after 2.2 billion securities worth S$1.2 billion changed hands.
“The return of risk appetite in Wall Street overnight may set a positive backdrop for Asia, as optimism continues to bask in the Federal Reserve’s policy pivot while US labour market risks are not as worrying as before,” said Yeap Jun Rong, market analyst at IG.
Yeap said a dip in Treasury yields overnight and a pause in the US dollar rally also led market participants to take the chance to load up on risks.
“We are also seeing markets starting to fade geopolitical risks in the absence of any disruptions to supply chains, trade routes and energy supplies thus far,” he said.
Elsewhere in Asia, key indices were mixed. The Hang Seng Index fell 1.4 per cent, and the FTSE Bursa Malaysia KLCI slid 0.04 per cent. Meanwhile, the Nikkei 225 rose 0.9 per cent.
On the STI, SGX was the biggest gainer, rising 1.8 per cent or S$0.21 to S$11.61.
Meanwhile, Hongkong Land was the biggest loser, falling 2.9 per cent or US$0.12 to US$4.03.
The three local banks ended higher on Wednesday. DBS gained 1.2 per cent or S$0.45 to S$38.80, OCBC rose 1.2 per cent or S$0.18 to S$15.06, and UOB was up 0.5 per cent or S$0.17 at S$31.93.
