[SINGAPORE] Local stocks finished Tuesday (May 13) higher after the United States and China announced they would temporarily lower tariffs on each other’s products in a 90-day cool-off period.
On the Singapore Exchange, advancers beat decliners 371 to 209, as 1.4 billion securities worth S$2.1 billion changed hands.
The benchmark Straits Times Index (STI) gained 0.1 per cent or 4.89 points to 3,881.05.
The index had earlier jumped after a joint statement by US and China stated that they would pause the punitive reciprocal tariffs on each others’ products, cutting the existing duties by 115 percentage points.
UOB economists Alvin Liew and Ho Woei Chen said the announcement will likely pave the way for a more durable trade agreement between the US and China in 90 days.
“With the pause, Chinese exporters are expected to resume frontloading of production and shipments to the US in the 90-day window, which would provide near-term boost to its economic outlook,” they said in a note.
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Regional indices were mixed. Hong Kong’s Hang Seng Index fell 1.9 per cent, while Japan’s Nikkei 225 rose 1.4 per cent. South Korea’s Kospi ended almost flat. The Bursa Malaysia Kuala Lumpur Composite Index increased 2.3 per cent.
Back home, the top gainer on the STI was maritime player Yangzijiang Shipbuilding, which leapt 4.2 per cent or S$0.09 to S$2.21.
The index was dragged by technology and defence group ST Engineering, which lost 7.1 per cent or S$0.54 to S$7.09. This comes after the group posted on Friday an 8 per cent rise in first quarter revenue to S$2.9 billion.
The three local banks gained ground on Tuesday. DBS climbed 1.2 per cent or S$0.52 to S$44.23, UOB increased 1.6 per cent or S$0.54 to S$35.37 and OCBC rose 0.7 per cent or S$0.12 to S$16.35.
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