SINGAPORE – Losses on two key Wall Street indexes overnight triggered a sell-down across most of the region on Jan 10 that inflicted a moderate hit on local shares.

The downturn left the Straits Times Index (STI) 18 points or 0.6 per cent lower at 3,179.96, with losers outpacing gainers 315 to 206 across the broader market on trade of 1.06 billion shares worth $946 million.

Key gauges from Hong Kong, China, South Korea and Malaysia all finished down except Japan’s, which climbed to fresh three-decade highs.

Positive news on inflation in Australia failed to stop shares there from sinking 0.7 per cent after ending a four-day losing streak on Jan 9.

Wall Street set a lacklustre tone on a day of muted trading. While the Nasdaq climbed for a third straight day on Jan 9, adding 0.1 per cent, the S&P 500 slipped 0.1 per cent and the Dow Jones Industrial Average lost 0.4 per cent.

Given the relatively quiet economic calendar ahead, sentiment remains flat, with all eyes on the US inflation report on Jan 11 to provide cues for market direction, said IG market analyst Yeap Jun Rong.

Losses here were led by banking stocks. DBS fell 1.1 per cent to $32.51, UOB slipped 1 per cent to $28.23, while OCBC Bank retreated 0.4 per cent to $12.83.

Singapore Airlines jumped 1.7 per cent to $6.54. CGS-CIMB Research upgraded the stock from “reduce” to “add”, citing re-rating catalysts from strong passenger demand and rising cargo yields amid falling jet fuel prices. The house has raised its target price for the counter from $5.47 to $6.91.

Delfi retreated 1.8 per cent to $1.10. The midstream consumer company is benefiting from the consumption recovery across South-east Asia on the back of stronger consumer spending, accelerating economic growth and a tourism recovery, said RHB Research.

The brokerage has a “buy” recommendation on the counter, with a target price of $1.55. THE BUSINESS TIMES