Singapore equities opened firmer, with the Straits Times Index (STI) rising 23.85 points or 0.46% to 5,227.86 as banking heavyweights led early gains despite a mixed overnight session on Wall Street.
Market breadth at the open was positive, with 100 gainers versus 80 decliners, suggesting a mildly constructive tone across the broader board. Early turnover stood at 85.55 million shares valued at S$145.25 million.
The upside in the STI was anchored by the local banking trio. DBS rose 0.78% to S$66.81, while OCBC and UOB also traded higher, helping to offset softer sentiment in parts of the broader market.
The positive start came against a backdrop of weakness in US equities, where the S&P 500 and Nasdaq closed lower after a selloff in megacap technology stocks. Alphabet led declines, while Meta, Amazon and Microsoft also fell, as investors reassessed valuations in the artificial intelligence trade.
The Dow Jones Industrial Average bucked the trend, ending higher on strength in healthcare and industrial stocks, highlighting a rotation away from high-growth tech names.
Regional sentiment remained cautious, with investors also monitoring geopolitical developments after oil prices eased on renewed US-Iran diplomatic momentum. A roadmap toward a potential agreement within 60 days helped cool energy markets, even as tensions persisted over key shipping routes.
In derivatives, early SGX activity showed mixed moves across Asia-linked futures. Nikkei 225 Index futures for September 2026 traded at 72,365, while FTSE Taiwan Index futures and MSCI Singapore Index futures also held steady in early trade.
Attention this week is expected to centre on US inflation data, particularly the Personal Consumption Expenditures (PCE) index, which could influence expectations for Federal Reserve policy direction. Markets are currently pricing in a 25-basis-point rate hike in September, according to LSEG data.
