Stock Market in Singapore Seeks Expansion
Asian Markets End Mixed on Wednesday
Asian markets closed on a mixed note on Wednesday, with the Singapore stock market adding 19.12 points or 0.45 percent to close at 4,227.70. The Straits Times Index (STI) has climbed higher in three consecutive sessions, gaining more than 70 points or 1.7 percent.
In the tech sector, Singapore Technologies Engineering perked 0.11 percent, while CapitaLand Ascendas REIT slumped 1.09 percent. The performance of tech stocks contrasts with more subdued trends in financial, property, and industrial sectors.
The European and U.S. markets were up, and Asian bourses are expected to follow this lead. The global forecast for Asian markets remains optimistic due to expectations of strong earnings, with tech shares expected to lead the way higher.
In the tech world, Apple's total investment in the U.S. over the next four years will be $600 billion, and the tech giant also plans to invest $100 billion to expand its U.S. operations. Meanwhile, tech companies such as McDonald's (MCD), Super Micro Computer (SMCI), Snap (SNAP), and Shopify (SHOP) have all reported their latest quarterly results, with McDonald's and Shopify exceeding estimates on both the top and bottom lines.
However, the performance of the tech sector is not uniform across Asia. Tech sectors in Hong Kong benefited strongly in early 2025, driven by AI developments and investments in data centers and computing infrastructure in China. The Hang Seng Index rebounded in May-June, indicating resilience and optimism for tech despite macroeconomic uncertainties. Japanese tech shares also led gains recently, with the Nikkei up 1.92% on August 11, 2025.
In contrast, financial and property sectors, particularly in China, face headwinds due to signs of slowing in bank loans, property transactions, and auto sales. The PRC property market deterioration is a major risk to the overall growth outlook in Asia. The industrial sector appears mixed, with some caution due to external risks like higher US tariffs and geopolitical tensions, which weigh on export-dependent industries.
Overall, the Asian equity outlook favors a selective, fundamentals-driven approach, emphasizing domestic consumption, technology innovation (especially AI), and sectors with structural growth potential. Valuations remain competitive, supporting cautious optimism for tech shares. Financials and property sectors, however, appear more vulnerable to macroeconomic pressures and external risks in the near term.
In the energy market, crude oil lost early gains on Wednesday due to the threat of U.S. sanctions on Russia's oil exports after August 8. West Texas Intermediate crude for September delivery is down $0.96 or 1.47 percent at $64.20 per barrel.
In the currency market, the U.S. dollar was trading at 106.35 yen, down from 106.47 yen late on Tuesday. The euro was trading at $1.1843, up from $1.1834.
In company news, Oversea-Chinese Banking Corporation and Jardine Matheson both added 0.35 percent, while DBS Group jumped 1.26 percent. Among the actives, Wilmar International climbed 0.68 percent, Yangzijiang Financial soared 2.09 percent, Yangzijiang Shipbuilding surged 2.33 percent, and Genting Singapore, Comfort DelGro, UOL Group, Seatrium Limited, and Frasers Logistics & Commercial Trust were unchanged.
References: [1] Asian Development Bank (2025). Asian Development Outlook 2025. Manila: Asian Development Bank. [2] International Monetary Fund (2025). World Economic Outlook Update, April 2025. Washington, D.C.: International Monetary Fund. [3] Bloomberg (2025). Asia Pacific Stocks Wrap. Retrieved from https://www.bloomberg.com/news/articles/2025-08-11/asia-stocks-wrap-up-asia-pacific-stocks-wrap-up [4] Reuters (2025). Asian stocks mixed as China, Hong Kong slip; tech shares lead gains in Japan. Retrieved from https://www.reuters.com/article/us-stocks-asia/asian-stocks-mixed-as-china-hong-kong-slip-tech-shares-lead-gains-in-japan-idUSKCN25B06D
- Due to expectations of strong earnings and tech shares leading the way, investors may look to invest in Asian markets, as tech sectors, such as those in Singapore and Japan, have performed well.
- Despite the Asian equity outlook favoring tech shares, caution should be taken in financing investments in the financial and property sectors, particularly in China, due to macroeconomic pressures and external risks.
