[SINGAPORE] Singapore stocks soared in a relief rally after US President Donald Trump announced on Wednesday (Apr 9) a 90-day pause to his steep reciprocal tariffs on his “worst offender” countries, lowering them to 10 per cent during the period.
The Straits Times Index (STI) rallied as much as 8.7 per cent shortly after the market opened, up 295.5 points to reach 3,688.2. This comes after eight consecutive days closing in the red for the index, including Monday’s 7.5 per cent plunge.
By mid day, the STI was up 5.09 per cent.
Local banks shot up after the opening bell. DBS rose 10 per cent or S$3.71 to S$40.87. OCBC hiked 10.3 per cent or S$1.49 to S$15.91, while UOB jumped 10.2 per cent or S$3.15 to S$34.14.
Singtel was the most actively traded counter by volume reaching 10.1 million shares, with the stock trading higher at S$3.62 in a 6.5 per cent jump.
Other actively traded counters included Genting Singapore with 9.2 million shares traded, climbing 5.2 per cent to S$0.705.
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Across the broader market, 106.6 million shares worth S$289.8 million changed hands, with gainers outnumbering losers 215 to 10.
Meanwhile, Singapore-listed real estate investment trusts (S-Reits) showed signs of recovery after falling hard earlier this week. Mapletree Logistics Trust gained 4.8 per cent or S$0.05 to S$1.10, while Manulife US Reit surged 11.3 per cent after its 10.2 per cent drop on Wednesday. Other top gainers among the S-Reits included US office Reit Prime US Reit which jumped 10.8 per cent, and the industrial ESR-Reit which climbed 7.5 per cent.
Across Asia, the Nikkei 225 in Japan surged 8.8 per cent shortly after opening, while South Korea’s Kospi index jumped 5 per cent. Australian stocks on the ASX 200 climbed 5.1 per cent.
Wall Street stocks rallied after Trump’s announcement on social media. The Dow Jones Industrial Average surged 7.9 per cent to 40,608.45, while the S&P 500 Index rallied 9.5 per cent to 5,456.9. The tech-heavy Nasdaq Composite Index rocketed 12.2 per cent to 17,124.97.
China, however, would not be reprieved from levies. Trump instead raised tariffs on goods from China to 125 per cent, following Beijing’s 84 per cent tariff retaliation on Wednesday. This was due to China’s “lack of respect” to the world’s markets, Trump indicated.
Still, Hong Kong’s Hang Seng Index continued its recovery after Monday’s 13.2 per cent tumble. The index rose 3.1 per cent shortly after the market opened, following back-to-back green days on Tuesday and Wednesday.
European shares tumbled on Wednesday following China’s retaliatory tariffs on US imports, with the pan-European Stoxx 600 dropping 3.5 per cent to 469.89 points. Healthcare stocks lead losses after Trump threatened more sector-specific tariffs, including on the previously exempt pharmaceuticals sector.
