Markets eye Mid-East risk as US inflation data provides uplift

Raft of stimulus measures unveiled by China also boosts mood in Asia-Pacific

- Ven Sreenivasan

Moderating US inflation numbers and subdued consumer spending data provided uplift for somewhat nervy equity markets last week. Sentiment was also boosted late in the week, especially in the Asia-Pacific, by news of China's roll-out of a raft of stimulus measures and cash injections to boost its ailing corporate sector and economy.

However, geopolitical risk has again reared its ugly head with the Israeli killing of Hezbollah leader Hassan Nasrallah on Sept 27. What happens over the next few weeks could be critical for markets.

On Wall Street, the Dow Jones Industrial Average closed out last week at another record after gaining 0.59 per cent to 42,313 points.

Despite closing in the negative on Sept 27, the S&P 500 added 0.62 per cent for the week to 5,738.17. This broad index of Wall Street stocks is now up some 20 per cent so far in 2024.

Meanwhile, the tech-heavy Nasdaq index rose 0.95 per cent for the week to 18,119.59 as tech stocks started recovering some of the mojo they had lost in recent months.

In Singapore, some profit-taking on bank and blue-chip stocks had the Straits Times Index giving up 1.4 per cent for the week to close at 3,573.36.

With interest rates poised to fall and the yield from Singapore's six-month Treasury bills dipping below 3 per cent for the first time in two years, there seems to be noticeable investor interest in Singapore real estate investment trusts, or S-Reits.

Data compiled by the Singapore Exchange (SGX) shows some moderate selling on Singtel, DBS Bank, OCBC Bank, Yangzijiang Shipbuilding, UOB, Genting Singapore, ST Engineering, Sats, Mapletree Logistics Trust and SGX. But others like CapitaLand Integrated Commercial Trust (CICT), Sembcorp Industries, CapitaLand Ascendas Reit, Mapletree Pan Asia Commercial Trust, Seatrium, Suntec Reit, ComfortDelGro, Frasers Centrepoint Trust, Venture and Keppel attracted net institutional inflow.