STI inches up on May 23, tracking regional indexes
SINGAPORE – A calmer session on American bond markets following progress of President's Trump's tax-and-spend bill steadied Wall Street and gave regional markets a lift as well on May 23.
The better mood nudged the Straits Times Index (STI) up 0.1 per cent or 2.33 points to 3,882.42 while gainers just beat losers 232 to 213 on trade of 1.2 billion shares worth $1.2 billion.
The local banks all rose: DBS added 0.6 per cent to $44.46; UOB advanced 0.1 per cent to $35.32; and OCBC put on 0.9 per cent to $16.29 and the index's top gainer.
The biggest loser was Yangzijiang Shipbuilding, down 3.7 per cent to $2.06.
The upbeat sentiment stemmed from a placid day on Wall Street that mirrored the more stable bond market. The S&P 500 and Dow Jones Industrials each dipped 0.1 per cent while the tech-heavy Nasdaq rose 0.3 per cent.
US stocks are recovering from a sell-off sparked by May 21's Treasury auction, as the bond vigilantes approved the taxation bill passed by the US House of Representatives, said Mr Jose Torres, senior economist at Interactive Brokers.
More expenditure reductions were offered compared with the original, appeasing fiscal hardliners.
He added that equities are also being bolstered by promising data in services and manufacturing following the Opec+ discussions favouring further oil production increases.
AMP chief economist Shane Oliver noted that US and global shares have recovered more than 80 per cent since the April falls sparked by the Trump tariffs and are now within 2 to 3 per cent of their record highs.
Major regional indexes were mostly higher. The Nikkei 25 in Japan was up 0.5 cent, Hong Kong's Hang Seng added 0.2 per cent and Malaysian stocks put on 0.6 per cent but the Kospi in Seoul closed down 0.1 per cent.
Australia's bourse nudged head 0.2 per cent in quiet trading before long weekend holidays in the US and Britain. THE BUSINESS TIMES
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