Stock Exchange in Singapore Potentially Halts Downward Trend
The global markets are experiencing a mix of support and weakness as Asian markets prepare for the day ahead. The uncertain forecast is attributed to potential support from oil and technology stocks, but weakness from property and transportation companies.
In Singapore, the Straits Times Index (STI) closed modestly lower on Wednesday, with losses from financial shares, property stocks, and a mixed performance from industrials. The STI ended the day at 4,219.41, having traded between 4,202.25 and 4,234.77. Notable losses were seen in companies like CapitaLand Ascendas REIT, CapitaLand Integrated Commercial Trust, City Developments, Comfort DelGro, DBS Group, DFI Retail Group, Hongkong Land, Keppel DC REIT, Keppel Ltd, Mapletree Pan Asia Commercial Trust, Mapletree Industrial Trust, Mapletree Logistics Trust, SATS, Seatrium Limited, SembCorp Industries, Singapore Technologies Engineering, SingTel, United Overseas Bank, Wilmar International, and Yangzijiang Shipbuilding. However, Genting Singapore, Yangzijiang Financial, Thai Beverage, CapitaLand Investment, Oversea-Chinese Banking Corporation, and UOL Group ended the day unchanged.
Crude oil inched higher on Wednesday, with West Texas Intermediate crude for September delivery rising $0.82 or 1.18 percent at $70.02 per barrel.
The U.S. economy rebounded by more than expected in the second quarter of 2025, according to the Commerce Department. Additionally, ADP reported that private sector employment in the U.S. increased more than expected in July.
In Singapore, the preliminary data released by the Ministry of Manpower (MOM) showed that the seasonally adjusted unemployment rate for the second quarter (Q2) of 2025 increased slightly to 2.1% from 2.0% in Q1. Despite this rise, employment grew significantly by 8,400 jobs during the quarter compared to 2,300 in Q1. The number of retrenchments remained stable at around 3,500. Some softening in resident employment was observed in outward-oriented sectors such as professional services and information and communications.
On the international front, the Federal Reserve's decision to leave interest rates unchanged was not unanimous, with Governors Michelle Bowman and Christopher Waller preferring a quarter percentage point reduction. This decision led to a mixed closing of the major averages, with the Dow Jones Industrial Average dropping 171.71 points, the NASDAQ Composite rising 31.38 points, and the S&P 500 falling 7.96 points. The European markets were up, while the U.S. bourses were mixed, and the Asian markets are expected to split the difference.
A notable development is the shortening of the grace period for Russia to avoid sanctions on its energy trades from 50 to 10 days.
Singapore is set to release Q2 numbers for unemployment later today.
[1] Ministry of Manpower. (2025, July 30). Press Release: Preliminary Estimates of Labour Market Conditions - 2nd Quarter 2025. Retrieved from https://www.mom.gov.sg/-/media/mom/newsroom/press-releases/2025/07/30/preliminary-estimates-of-labour-market-conditions-2nd-quarter-2025/preliminary-estimates-of-labour-market-conditions-2nd-quarter-2025.pdf [2] Ministry of Manpower. (2025, July 30). Press Release: Labour Market Trends - 2nd Quarter 2025. Retrieved from https://www.mom.gov.sg/-/media/mom/newsroom/press-releases/2025/07/30/labour-market-trends-2nd-quarter-2025/labour-market-trends-2nd-quarter-2025.pdf [3] Ministry of Manpower. (2025, July 30). Press Release: Employment Growth in 2nd Quarter 2025. Retrieved from https://www.mom.gov.sg/-/media/mom/newsroom/press-releases/2025/07/30/employment-growth-in-2nd-quarter-2025/employment-growth-in-2nd-quarter-2025.pdf [4] Ministry of Manpower. (2025, July 30). Press Release: Wage Growth in 2nd Quarter 2025. Retrieved from https://www.mom.gov.sg/-/media/mom/newsroom/press-releases/2025/07/30/wage-growth-in-2nd-quarter-2025/wage-growth-in-2nd-quarter-2025.pdf
- The mixed performance of the STI in Singapore suggests potential challenges in the local personal-finance sector, as key finance, property, and industrial stocks experienced losses.
- As Singapore prepares to release Q2 numbers for unemployment later today,data-and-cloud-computing advancements could play a crucial role in the analysis and presentation of the labor market trends.
- With the U.S. economy rebounding strongly in Q2 of 2025, there might be opportunities for individuals and businesses interested in investing in the American market, particularly in the technology sector given the ongoing increases in technology stocks.
- Amidst the potential impact of the Federal Reserve's interest rate decision on business and travel, the shortening of the grace period for Russia's energy trades may influence global energy prices, which in turn could make an impact on shopping and lifestyle expenses due to changes in the cost of goods.
