THE Straits Times Index (STI) closed down after the US announced additional tariffs on Tuesday (Mar 4).
The STI closed down 0.5 per cent or 18.16 points at 3,890.76.
Across the broader market, decliners outnumbered advancers 359 to 182 after 1.8 billion shares worth S$1.4 billion changed hands.
The trio of local banks closed lower on Tuesday, with DBS down 0.5 per cent or S$0.24 at S$45.53. OCBC finished trading down 0.2 per cent or S$0.04 at S$17.17, while UOB was down 0.4 per cent or S$0.15 at S$38.20.
The top gainer was ST Engineering, rose 2.7 per cent or S$0.16 at S$6.03.
The top loser was Yangzijiang Shipbuilding, declined 3.3 per cent or S$0.08 at S$2.34.
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Across the region, major indices closed lower, with the Kospi down 0.2 per cent and the Nikkei 225 down 1.2 per cent. Hong Kong’s Hang Seng Index closed down 0.3 per cent and the KLCI closed down 1 per cent.
Markets reacted to US tariffs on Canada and Mexico potentially becoming a reality after US President Donald Trump’s comment that there was “no room left” for a deal. The US also hiked tariffs on imports from China by 10 per cent on Monday, a move that markets anticipated, but risks further unwinding of Chinese equities, noted Yeap Jun Rong, market strategist at IG.
“With tariffs increasingly becoming a reality, expected market response was to de-risk, with major US indices reversing course overnight—Nasdaq fell 2.6 per cent, the S&P 500 dropped 1.8 per cent, and the Dow Jones Industrial Average declined 1.5 per cent,” he said.
The only gainers were defensive sectors such as real estate, consumer staples, healthcare and utilities.
Yeap highlighted two key uncertainties in the global economic landscape – firstly, a wave of retaliatory trade measures may be triggered, with China, Mexico and Canada already signalling a potential tit-for-tat trade conflict; and secondly, recent concerns over US economic growth may be further intensified, adding to fragile sentiments amid weaker economic data.
