{
  "id": 12838552,
  "title": "Bank sell-off casts pall in Southeast Asia, Singapore stocks drop 3pct",
  "url": "https://urgent.news/2026/10/08/bank-sell-off-casts-pall-in-southeast-asia-singapore-stocks-drop-3pct",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-08T09:48:40.000Z",
  "source": {
    "name": "New Straits Times",
    "slug": "new-straits-times",
    "url": "https://www.nst.com.my/business/corporate/2026/10/1550641/bank-sell-casts-pall-southeast-asia-singapore-stocks-drop-3pct"
  },
  "original_language": "en",
  "account": "Major banks across Southeast Asia experienced a decline of over 1% on Thursday, with DBS Group, the top lender, dragging Singapore stocks down by more than 3%. Rising bond yields heightened worries about bank earnings growth and funding costs. The MSCI EM Asia equities index fell 1.8% in its worst day since early September, chiefly affected by a 2.6% drop in South Korea's KOSPI. In Singapore, the FTSE Straits Times Index lost up to 3.2%, its lowest since mid-July. DBS saw its steepest daily loss since April 2022, dropping by 5.2%. Smaller rivals OCBC and UOB also fell nearly 5% each. Together, the three banks comprise over half of Singapore's main index and more than a third of the MSCI Asean equity gauge, which saw its worst daily decline since early March.\n\nJPMorgan and Citi expressed concerns over Asean banks' earnings outlook due to surging long-dated bond yields, higher funding costs, and normalization of exceptional first-half wealth-related income. Analysts predict that factors like higher rates, asset quality risks, funding tightness, and capital-market-related revenue risks could impact several bank stocks ahead of the third-quarter results. JPMorgan analysts advised reducing exposure to DBS, OCBC, and UOB. Market strategist James Ooi from Tiger Brokers noted that investors might be more sensitive to earnings risks and negative catalysts after a strong run in bank shares. The market might be reassessing the assumption that higher Singapore dollar interest rates are beneficial for banks, as increased rates raise loan yields and costs for deposits and other funding.\n\nSingapore's central bank is expected to release its quarterly monetary policy statement the following week. Negative sentiment spread to banking stocks across the region, with Malaysia's largest bank Maybank dropping 0.6%, pushing Kuala Lumpur stocks down 0.9%. Singapore's second-largest rival CIMB Group fell 1.9% to hit a three-month low. Thailand's Kasikornbank declined by 2.1% to its lowest in three months. South Korean stocks hit a one-month closing low. Samsung Electronics estimated a near ninefold increase in third-quarter earnings due to strong demand for AI chips, but its shares fell 2.4%. Tech-linked Taiwanese equities also slipped 1%. Most emerging Asian currencies traded in a narrow range against a relatively stable US dollar, with the exception of the Taiwan dollar, which depreciated by 0.5%.",
  "summary": "BENGALURU: Major banks in Southeast Asia declined more than one per cent on Thursday, with the region's top lender, DBS Group, dragging Singapore stocks more than three per cent lower as rising bond yields brought into focus risks to bank earnings growth and funding costs.",
  "key_points": [
    "DBS Group's 5.2% drop makes it steepest since April 2022",
    "Bond yields rise, heightening concerns about bank earnings and funding costs",
    "MSCI EM Asia index falls 1.8%, worst since early September"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}