Singapore shares fell 59 points, or 1.0%, to 5,659 by midday on Tuesday, wiping out gains from the previous two sessions and slipping to their lowest level since August 6. The benchmark index mirrored overnight losses on Wall Street, dragged down by a selloff in semiconductor stocks amid mounting concerns over the sustainability of AI-related investment.
Sentiment was further dampened by fresh economic data from China. Retail sales growth missed expectations, fixed-asset investment and residential property prices continued to decline, and the unemployment rate rose to a five-month high, even as industrial production growth surprised on the upside.
Investors were also cautious ahead of this week’s US Federal Reserve policy decision, following stronger-than-expected inflation data last week, while lingering worries over elevated oil prices added to the risk-off tone.
Losses were led primarily by consumer non-durables, producer manufacturing, and financial stocks. Among the notable decliners were Jardine Matheson Holdings (-2.8%), UOB (-1.9%), OCBC (-1.9%), Hongkong Land Holdings (-1.1%), and DBS Group (-0.9%).
