Singapore, Asia markets shrug off US Fed rate hike
Major Singapore Reits open slightly up or flat; broader market posts gains
Asia markets, including Singapore, opened mostly higher on Thursday, Sept 17, following the U.S. Federal Reserve's first rate hike in three years. The STI, Singapore's key index, gained 0.4% in the first five minutes of trading. Real estate investment trusts (REITs) sensitive to interest rates saw some losses, with UI Boustead REIT and Suntec REIT down 1.2% and 0.7%, respectively, but recovered by 9.20 am.
Most other sectors, including banks, opened higher. DBS, OCBC, and UOB saw gains of 0.7%, 0.6%, and 1.3%, respectively. The Fed's decision, targeting 3.75-4% overnight interest rate, marks the first rate hike since 2023 to combat persistent inflation caused by high crude oil prices during the U.S.-Iran conflict. Fed officials stated the decision was unanimous, with more rate hikes likely soon to bring inflation under control.
Global stock indices, such as South Korea's Kospi, Japan's Nikkei 225, and Topix, also opened higher. Meanwhile, Wall Street ended lower following the Fed's announcement.
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