Asian stocks fell to a two-month low on Wednesday as nervous markets recoiled on worries about an earlier US interest rate hike, while such a prospect helped send the dollar to a 12-year high against the euro. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.3 per cent after touching its lowest since January. Australian and South Korean shares each lost 0.5 per cent and Malaysian and Indonesian stocks also declined. Riskier assets both in the United States and elsewhere have come under pressure after Friday's robust US employment data increased expectations that the Federal Reserve could raise rates as soon as June -a prospect that appeared relatively more remote a few weeks prior. The possibility of higher US yields siphoning away funds from riskier assets gave the S&P 500, at a record high two weeks ago, its worst decline in two months overnight and emerging market stocks declined to their lowest since early January.
THE Straits Times Index (STI) stumbled right off the blocks on Wednesday to slip 15.61 points or 0.46 per cent at 3,382.65 as at 9.04am, tripped up by a bumpy Wall Street that fell overnight on renewed fears of an early interest rate hike. Leading the most active stocks as at 9.06am were Magnus Energy, down 0.1 Singapore cent at 0.3 Singapore cent, and Noble Group, down 4.5 Singapore cent at 89 Singapore cents. A total of 123.4 million shares worth S$119.1 million were traded as at 9.06am. Losers outnumbered gainers 117 to 43.
THE Straits Times Index on Tuesday slipped 6.31 points to 3,398.26 in a listless and weak session. Traders said volatility on Wall Street created by interest rate worries was casting uncertainty around world markets and affecting overall sentiment. Volume here amounted to 1.2 billion units worth S$1.2 billion and excluding warrants there were 174 rises versus 250 falls. Most of the loss the index suffered occurred in the final hour after Europe opened in the red across all markets, which, together with a one per cent fall in Hong Kong, suggested a weak Tuesday ahead for Wall Street.
