SINGAPORE: Singapore stocks rose as trading began on Monday, Dec 23, supported by gains across the Asia-Pacific region after lower-than-expected inflation data from the US, which eased concerns over interest rate cuts next year.
The Straits Times Index (STI) gained 0.2%, or 6.85 points, to 3,726.78 at 9:01 am, as reported by The Business Times. In the broader market, 75 stocks gained while 41 declined, with 69.3 million securities valued at S$49.4 million traded.
Singapore Post led in trading volume with 8.4 million shares traded. Its share price dropped 8%, or S$0.045, to S$0.515 after the company announced the termination of three senior management staff on Sunday.
Advanced Systems Automation also fell sharply by 33.3%, or S$0.005, to S$0.01, with nearly eight million shares traded.
Local banks performed well as trading began. DBS rose by 0.1%, or S$0.05, to S$42.87. OCBC gained 0.2%, or S$0.04, to S$16.43, while UOB edged up 0.1%, or S$0.02, to S$35.86.
Japan’s Nikkei 225 also rose 0.5% to 38,891.2, while Australia’s ASX 200 increased 0.6% to 8,115.5.
US stocks climbed on Friday after an inflation report showed cooler-than-expected figures, easing concerns about future interest rate changes. The Personal Consumption Expenditure index increased by 2.4% in November compared to a year earlier, slightly below the 2.5% forecast by economists surveyed by Reuters.
Following the report, traders slightly adjusted their expectations for Federal Reserve rate cuts in 2025. They now anticipate the first cut in March and a second by October, compared to earlier estimates of a 50% chance for a second cut by December 2025.
The Dow Jones Industrial Average gained 1.2% to 42,840.26, the S&P 500 advanced 1.1% to 5,930.85, and the Nasdaq Composite Index increased by 1% to 19,572.6.
European markets, however, experienced losses, marking their second straight weekly decline. The healthcare sector led the losses as Danish pharmaceutical company Novo Nordisk declined on disappointing trial results for a new obesity drug.
The pan-European Stoxx 600 index fell 0.9% to 502.19, recovering slightly after falling by 2% earlier in the session. /TISG
Read also: Singapore stocks traded lower on Friday morning—STI fell 0.5%
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