Singapore shares closed nearly 1 percent higher on Friday, while three out of the five other Southeast Asian markets ended lower in line with broader Asia. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.4 percent, hovering just above its four-month low touched earlier this week, after US Federal Reserve Chair Janet Yellen said an interest rate hike was imminent.
The Fed could raise interest rates "relatively soon" if economic data keeps pointing to an improving labour market and rising inflation, Yellen said before a Congressional Joint Economic Committee on Thursday. Prospects for a rate hike also got a boost from US government data showing that initial claims for state unemployment benefits hit a 43-year low last week.
In addition, US consumer prices recorded their biggest increase in six months in October on rising gasoline costs and rents, suggesting a pickup in inflation. "The key thing dominating each market in Asia today is Yellen's speech overnight in which she sent a very strong message based on the December 14 Fed meeting. We will have no clear trend overall in Asia until we see the Fed decision," said Rakpong Chaisuparakul, an analyst with KGI Securities in Bangkok.
Singapore's FTSE Straits Times Index climbed for a second straight session, adding 0.9 percent this week in its second weekly gain, with industrials leading the rise. Singapore is a safe market to hide in at the moment, said Andrew Chow of UOB Kay Hian Pte Ltd, adding that very big-cap companies were quite resilient and were safe-harbour stocks.
Indonesian shares fell as much as 1 percent before closing down 0.4 percent with technology and energy stocks the biggest losers. Thailand shares were flat ahead of the release of third-quarter gross domestic product growth data, likely on Monday. Economic growth is expected to have slowed slightly in the third quarter on weaker private sector activity even as tourism remained strong and exports surprisingly picked up.
Comments
Comments are closed for this article.