SINGAPORE — Singapore’s stock market was swept into a broader global sell-off on April 7, as investor sentiment soured following U.S. President Donald Trump’s refusal to ease global trade tariffs—stoking fears of a worldwide economic downturn.

The Straits Times Index (STI) nosedived 8.57% at the open, dropping 328.2 points to 3,497.66, triggering market-wide jitters. Despite intraday attempts to recover, the STI ultimately ended the session down 7.5%, or 285.36 points, marking its steepest single-day decline since the 2008 global financial crisis.

Market Bloodbath: Broad-Based Losses and Unprecedented Volumes

The rout was widespread:

• 612 stocks declined,
• Only 137 managed gains,
• Trading volume surged to S$4.2 billion, nearly three times February’s daily average, reflecting a rush of institutional repositioning and retail panic selling.

Investors were spooked by heightened global uncertainties, including:

• Prolonged U.S.-China tariff tensions,
• A stronger U.S. dollar pressuring regional currencies,
• Recession signals from U.S. bond yield inversions.

Latest Market Developments: Cautious Rebound and Volatility Ahead

Following the plunge, the Singapore market has shown tentative signs of stabilization, tracking a modest rebound across key Asian indices in recent days. The STI has since regained around 2.1%, buoyed by bargain-hunting in key blue-chip counters like DBS Group, Keppel Corp, and Singtel.

However, analysts remain cautious:

• Ongoing trade policy uncertainty in the U.S.
• Fluctuations in global commodity prices, particularly oil and semiconductors
• Awaited guidance from the upcoming MAS (Monetary Authority of Singapore) policy meeting

These factors continue to cloud near-term market direction.

Broader Asian Pressure

Singapore’s downturn mirrored similar declines across the region:

• Japan’s Nikkei 225 fell over 4%
• Hong Kong’s Hang Seng Index dropped 5.2%

• South Korea’s KOSPI lost 3.9%
  All echoing concern that escalating trade friction could slow global growth and curtail corporate earnings.

INVESTOR TAKEAWAY

While Singapore remains one of Asia’s most stable financial hubs, its openness to global trade and reliance on multinational exports make it particularly sensitive to external shocks. Analysts advise investors to:

• Remain diversified,
• Avoid overreacting to short-term volatility,
• Watch for central bank signals and corporate earnings reports for direction.

As global markets recalibrate, Singapore’s market will likely experience continued turbulence—but also potential buying opportunities for long-term, risk-tolerant investors. (zai)