SINGAPORE: Singapore’s Straits Times Index (STI) fell 2% to 3,822.55 at 1:02 pm on Tuesday (March 11), joining other Asian markets’ declines over US tariffs and recession concerns.
In the broader market, 354 stocks fell while 148 rose, with about one billion securities worth S$1.2 billion traded.
According to The Business Times, local banks were all down at 12.55 pm. DBS dropped 2.9% to S$44.54, with 6.3 million shares traded. UOB retreated 3.1% to S$37.46 with 3.4 million shares exchanged, while OCBC dipped 1.9% to S$16.73 with 6.8 million shares traded.
Other major stocks also slipped in early trade. Seatrium fell 2.4% to S$2.08, with 2.5 million shares exchanged. ST Engineering dropped 0.7% to S$6.02 with 2.7 million shares traded, while Sembcorp retreated 3.4% to S$6.01 after 1.6 million shares were exchanged.
Across Asia, Japan’s Nikkei 225 dropped over 2% in early trade, while Australia’s S&P/ASX index fell 1.4%. South Korea’s Kospi also declined by nearly 1.8%.
In the US, the Nasdaq Composite Index posted its biggest one-day loss since 2022, tumbling 4% to 17,468.32. The S&P 500 fell 2.7% to 5,614.56, while the Dow Jones Industrial Average dropped 2.1% to 41,911.71.
These declines followed weeks of losses, with the S&P 500 down over 8% from its February high and the Nasdaq down more than 10% from its December peak.
European markets also reached their lowest point in nearly a month, with the pan-European Stoxx 600 Index falling 1.3% to 546.20. Tech shares were hit particularly hard as investors worried about the impact of US tariffs.
According to Bloomberg, investors are concerned about potential tariffs affecting major US trading partners like China, Canada, and Mexico.
US President Donald Trump recently described the country’s economy as being in “a period of transition”, avoiding direct comments on recession risks.
ANZ Research noted that market uncertainty could persist in the near term, especially with new tariffs expected in April and May.
Michael Wan, a senior currency analyst at MUFG, warned that Trump’s tariff policies could dampen investment in Asia.
He said, “This will over time also feed through to our region through slowing investments into manufacturing factories and also weaker exports as US consumers adjust to a potential new reality of higher prices and lower supply.”
Mr Wan also pointed out the weakness of Asian currencies in the near term, saying markets have underestimated the risks Trump’s tariffs and policies pose to Asia’s growth.
Despite the market turbulence, BlackRock analysts remained optimistic about US stocks, suggesting that recession fears might be overblown.
“The labour market remains strong in contrast to soft survey data showing declining consumer confidence. US corporate earnings are also holding up,” they said.
They also pointed to a strong labour market and stable corporate earnings as positive signs, though they warned that ongoing policy uncertainty could lead to near-term volatility. /TISG
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