Singapore shares closed firmly higher on Sept 4, buoyed by gains in the banking heavyweights and Yangzijiang Shipbuilding as easing fears of an imminent US interest rate hike lifted regional sentiment.
The benchmark Straits Times Index (STI) climbed 54.25 points, or 0.9%, to 5,801.96, with gainers outnumbering decliners 374 to 210. About 1.3 billion securities worth S$1.9 billion changed hands.
Leading the advance was Yangzijiang Shipbuilding, which jumped 4.7% to S$4.94, supported by its strong earnings performance and the progressive construction of vessels secured at higher contract prices.
Singapore’s three major banks also provided support. DBS rose 0.9% to S$78.65, OCBC gained 1.1% to S$32.27, while UOB added 0.6% to S$42.01. Sembcorp Industries bucked the trend, slipping 1.1% to S$6.11.
The rally came as investors scaled back expectations for a US Federal Reserve (Fed) rate hike in September, after Fed governor Christopher Waller indicated rates could remain unchanged should inflationary pressures continue to ease. The comments helped cool US Treasury yields and boosted risk appetite across Asian markets ahead of the closely watched US August jobs report.
