SINGAPORE – Local shares dipped into the red on April 26 as traders hedged their bets ahead of key United States economic data and lingering concerns over the risk persistent inflation poses to interest rate cuts.

The Straits Times Index (STI) curtailed much of the damage, slipping just 0.2 per cent or 7.65 points to 3,280.10 on trade of 1.6 billion shares worth $1.2 billion, with gainers outpacing losers 327 to 242 on the broader market.

The three key indexes on Wall Street were also down overnight, although that seemed to have little effect across the region.

The Nikkei 225 in Tokyo rebounded to add 0.8 per cent, Hong Kong’s Hang Seng rose 2.1 per cent, and Malaysian shares put on 0.4 per cent. The big loser was the ASX 200, which dived 1.4 per cent, putting it on course for its worst monthly performance since September 2022.

Mr Stephen Innes, managing partner at SPI Asset Management, said the Bank of Japan’s policy announcement was a focus for Asia on April 26, while investors also revelled in the latest earnings reports from US mega-tech companies.

Meanwhile, a jump in core US inflation sparked concerns on whether the worst-case scenario has been adequately priced in. Investors would undoubtedly struggle to navigate a situation where rate cuts for 2024 are off the table, he noted.

The upcoming release of the US personal consumption expenditure data will be crucial for investors, offering a key insight into market sentiment, said Mr Innes.

“The pivotal question revolves around the relative influence of earnings versus yields on equity markets,” he added.

Seatrium was the STI’s top gainer, rising 1.1 per cent to 8.9 cents on trade of 577 million shares, while Venture Corp was the biggest decliner, falling 1.3 per cent to $14.11.

The local banks ended lower: DBS Bank fell 0.1 per cent to $34.42, OCBC Bank retreated 0.4 per cent to $14.27, and UOB dipped 0.4 per cent to $30.41. THE BUSINESS TIMES