SINGAPORE – Local shares slid on Feb 21 in the wake of caution over the direction of United States interest rates and disappointing numbers from Singapore Airlines (SIA).

A wary mood across the region did not help either and conspired to send the Straits Times Index (STI) down 0.8 per cent or 26.95 points to 3,217.11, although gainers beat losers 312 to 283 on trade of 2.24 billion shares worth $1.47 billion.

Elsewhere, the Hang Seng Index in Hong Kong rose 1.6 per cent, while South Korea’s Kospi fell 0.2 per cent, the Nikkei 225 in Tokyo retreated 0.3 per cent and Australian shares declined 0.7 per cent.

IG market analyst Yeap Jun Rong said Asian stocks appear to be taking a “wait-and-see” approach, with the upcoming US Fed minutes and chipmaker Nvidia’s impending fourth-quarter earnings the key risks.

Concerns over Nvidia rattled Wall Street overnight and sent all three key indexes down: The S&P 500 slid 0.6 per cent, the tech-heavy Nasdaq dropped 0.9 per cent, while the Dow Jones Industrial Average dipped 0.2 per cent.

Mr Yeap also noted that there may still be some market reservations about the effectiveness of China’s cut to the five-year loan prime rate, given the limited success of previous cuts.

“Nevertheless, it highlights Chinese authorities’ commitment to shore up the property market and lift overall growth, although market participants will still want to see policy measures translate to a sustained economic recovery for more conviction into Chinese equities,” he said.

Jardine Matheson Holdings was the STI’s top gainer, rising 4 per cent to US$43.73, but SIA landed at the bottom of the table, falling 9.5 per cent to $6.67 after third-quarter earnings came in 15 per cent below consensus.

Sembcorp Industries also saw heavy trading as it fell 5.7 per cent to $5.48. The company posted a 15 per cent year-on-year rise in net profit to $412 million for the second half of the 2023 fiscal year. THE BUSINESS TIMES