SINGAPORE – Wall Street gains overnight driven by a resurging tech sector galvanised local investors into pushing shares here higher on Oct 9.
The more positive mood left the benchmark Straits Times Index (STI) ahead 0.6 per cent or 19.97 points at 3,595.66. But losers outnumbered gainers 309 to 255 across the broader market after 2.2 billion securities worth $1.2 billion changed hands.
Wall Street was again the catalyst, where gains by the big seven tech stocks pushed the S&P 500 up 1 per cent, while the tech-focused Nasdaq advanced 1.4 per cent and the Dow Jones Industrial Average put on 0.3 per cent.
IG market analyst Yeap Jun Rong said: “The return of risk appetite in Wall Street may set a positive backdrop for Asia, as optimism continues to bask in the Federal Reserve’s policy pivot while US labour market risks are not as worrying as before.”
Mr Yeap added that a dip in Treasury yields overnight and a pause in the US dollar rally also led market participants to take the chance to load up on risk.
“We are also seeing markets starting to fade geopolitical risks in the absence of any disruptions to supply chains, trade routes and energy supplies thus far,” he noted.
Key regional indexes were mixed, partly on disappointment after Chinese officials failed to announce major financial market stimulus measures.
The Hang Seng in Hong Kong fell 1.4 per cent, Malaysian shares slid 0.04 per cent and the ASX in Australia ended flat after earlier hitting a six-day high.
However, the Nikkei 225 in Tokyo rose 0.9 per cent.
SGX was the STI’s biggest gainer, rising 1.8 per cent to $11.61, while Hongkong Land led the losers, falling 2.9 per cent to US$4.03.
The three local banks ended higher.
