FX.co ★ Singapore Equities Fall Further

Equity markets in Singapore experienced a decline of 18 points, or 0.4%, settling at 3,937 in early trading on Thursday. This marks the lowest level the index has reached in over a week. The downturn mirrored a sharp drop in U.S. futures following President Trump’s announcement of new tariffs. Investors' primary focus rested on the upcoming 10% baseline tariff set to be implemented on April 5, which will also apply to Singapore. Under the U.S.-Singapore Free Trade Agreement, Singapore does not impose tariffs on U.S. goods, but it will be subject to this baseline rate. Nevertheless, the decline was limited by new data from China, showing a substantial expansion in its services sector—the largest in three months—alongside robust growth in its manufacturing sector, the fastest in four months. Concurrently, Singapore's private sector noted its most significant growth in four months. The Straits Times Index (STI) dropped for the fourth consecutive session, dragged down by sectors such as technology, energy, minerals, and finance. Key contributors to the decline included companies like UOB and Hongkong Land, both down 1.5%, and OCBC and SembCorp Industries, each down 0.6%.