Singapore Stocks Reach All-Time High as Asia Markets React to Fed Comments
Singapore’s stock market hit a record high on Wednesday amid mixed performance across Asia-Pacific markets, as investors weighed recent remarks from US Federal Reserve Chair Jerome Powell regarding interest rate policy and trade tariffs, CNBC reports.
The Straits Times Index rose 0.45% to 4,008.85, surpassing its previous peak from March, according to data from LSEG. The rally comes after Powell stated that the Fed would likely have started cutting interest rates if not for recent tariff initiatives introduced by President Donald Trump.
Powell’s comments have added a new layer of complexity to the global economic outlook. While inflation and employment data continue to influence Fed policy, new tariffs have prompted concerns about persistent price pressures, potentially delaying rate cuts.
Across the region, markets posted mixed results:
Japan’s Nikkei 225 fell 0.56% to close at 39,762.48, while the Topix declined 0.21%.
South Korea’s Kospi dropped 0.47%, closing at 3,075.06, with the Kosdaq also down 0.19%.
Australia’s S&P/ASX 200 gained 0.66%, finishing the day at 8,597.7.
Hong Kong’s Hang Seng Index rose 0.73%, while China’s CSI 300 remained flat at 3,943.68.
In the US, major stock indexes closed mixed on Tuesday. The S&P 500 dipped 0.11%, the Nasdaq Composite fell 0.82%, and the Dow Jones Industrial Average rose 0.91%.
Investor sentiment in Singapore was further buoyed by a UBS upgrade of the country’s equities to “Attractive.” Analysts pointed to the market’s resilience amid geopolitical uncertainty, citing a stable currency, steady earnings outlook, and strong dividend yields. UBS also highlighted equity market reforms, including a SGD 5 billion capital injection, as potential catalysts.
Meanwhile, regional developments also drew attention. In Thailand, stocks fell 0.41% after Prime Minister Paetongtarn Shinawatra was suspended by the Constitutional Court, adding political uncertainty to ongoing economic concerns.
Elsewhere, Macau’s gaming sector saw gains following a 19% year-over-year jump in gaming revenue for June. Shares of major operators such as Sands China and MGM China surged over 7%.
