22-04-2025
- Business
- New Straits Times
Singapore stocks headed for sixth day of gains; Asian currencies slip
KUALA LUMPUR: Singapore stocks rose for a sixth straight session on Tuesday, marking their longest winning streak in over four months, while recent gains in emerging Asian currencies fizzled out as the dollar steadied after a sharp drop.
Singapore's Straits Times index rose up to 1.7 per cent, their highest since April 4, driven by top banks DBS Group and Oversea-Chinese Banking Corp.
The city-state's defensive and high-yielding stocks, once sidelined for their limited growth outlook, have drawn renewed interest from foreign investors seeking steadiness through rampant volatility.
"Singapore can be viewed as a safe haven in the current turbulent environment. It has an attractive dividend yield, resilient currency and multi sectors that are not directly exposed to tariffs," said Paul Chew, Head of Research at Phillip Securities.
Investors were likely to remain focused on defensive sectors, with global markets expected to stay volatile in the coming months, said Carmen Lee, Head of OCBC Investment Research.
Elsewhere in Southeast Asia, markets were mixed, with Jakarta up 0.9 per cent and Bangkok flat, while Taiwan fell 1.6 per cent to a near two-week low, tracking weak cues from Wall Street.
In Malaysia, both the ringgit and the local benchmark index were trading in the red after an advance print on Monday showed gross domestic product moderating in the first quarter and prompted brokerages to revise their annual growth expectations.
Brokerages Barclays and CGS International Securities downgraded their annual gross domestic product growth estimates for Malaysia, while Citigroup saw "downside risks" to annual growth.
Currencies in the Philippines and Taiwan edged lower after hitting multi-month highs in earlier sessions.
The South Korean won drifted marginally higher. Mizuho Bank's chief Asian FX strategist, Ken Cheung Kin Tai, said the lingering concerns over US reciprocal tariffs and US recession could dampen the risk appetite for emerging currencies.
The Indonesian rupiah, among the worst-performing emerging market currencies globally, has depreciated around 5 per cent this year amid concerns over fiscal spending plans and capital flight driven by tariff fears.
The currency was trading 0.3 per cent lower ahead of Bank Indonesia's policy decision on Wednesday, where the central bank is widely expected to stay pat on interest rates.
The US dollar was trading 0.2 per cent lower at 98.18.
