Oil jumps above US$107 as Asia sells off, Fed and BOJ rate decisions now collide with a fresh energy shock Markets are opening the week under renewed pressure. Brent crude has jumped about 3% to above US$107 , Asian equities are falling sharply, and U.S. Treasury yields remain close to 5%. At the same time, investors are preparing for possible rate hikes from both the Federal Reserve and Bank of Japan this week . For investors, the central question has become: Can central banks contain inflation without causing a much larger slowdown when energy prices are surging at the same time? 30-second market snapshot Market / Asset Latest 🇺🇸 S&P 500 7,656.98, +0.86% Friday 🇺🇸 Dow Jones +0.98% Friday 🇺🇸 Nasdaq +0.96% Friday 🇲🇾 FBM KLCI 1,686.74, -1.10% Friday 🇯🇵 Nikkei -1.7% Monday morning 🇰🇷 Kospi -3.3% Monday morning 🌏 MSCI Asia ex-Japan -0.8% 🛢️ Brent crude ~US$107.36, +2.6% 🛢️ WTI crude ~US$102.48, +2.4% 🇺🇸 U.S. 10Y Treasury ~4.97% 🥇 Gold ~US$4,336...
Singapore equities opened higher on Wednesday, tracking a strong global rebound as optimism over a potential end to the Iran conflict lifted investor sentiment.
STI Climbs as Risk Appetite Returns
The FTSE Singapore Straits Time Index rose 1.51% to 4,959.12, with broad-based buying across the market.
- Advancers outpaced decliners 165 to 20
- Trading volume reached 61.7 million shares (S$144 million)
The rally follows strong gains on Wall Street, signalling renewed risk appetite across global markets.
Wall Street Surges on Iran De-escalation Signals
US equities rallied sharply overnight as Iran signaled willingness to negotiate an end to the conflict.
- S&P 500 Index +2.9%
- Nasdaq Composite Index +3.8%
- Dow Jones Industrial Average +2.5%
Mega-cap tech stocks led gains, including:
- Meta Platforms (META.US) +6.7%
- NVIDIA (NVDA.US) +5.6%
- Alphabet-A (GOOGL.US) +5.1%
The rally reflects market optimism that geopolitical risks may ease, reducing pressure on inflation and growth.
Singapore Macro: Strong External Position Holds
Singapore’s economy remains resilient, with its Net International Investment Position (NIIP) rising 2.6% QoQ to S$1.4 trillion in Q4.
- External assets: S$8.8 trillion
- External liabilities: S$7.4 trillion
This reinforces Singapore’s position as a net creditor, supporting long-term financial stability.
Meanwhile, consumers remain value-focused despite improving income expectations, prioritising essential spending while leveraging promotions and cashback tools.
Stocks in Focus
OCBC Bank
OCBC will reduce its 360 Account interest rate to 4.45% (from 5.45%) effective May 1, reflecting normalisation in interest rate conditions.
Yangzijiang Shipbuilding
Secured US$980 million in new shipbuilding contracts (22 vessels) in Q1 2026, reinforcing orderbook visibility.
City Developments Limited
Reported a sharp increase in executive compensation, with CEO pay rising over 70% year-on-year, drawing investor attention amid recent share volatility.
First REIT
Plans to divest its entire Indonesia portfolio for S$471.5 million, aiming to improve distribution stability and recycle capital.
Investor Takeaways
- Singapore stocks are rising, tracking global optimism over a potential Iran conflict resolution.
- Wall Street’s strong rally, led by tech stocks, is boosting regional sentiment.
- Singapore’s strong external balance sheet (NIIP) supports macro stability.
- OCBC’s rate cut signals a shift in interest rate dynamics, potentially impacting bank margins and deposit flows.
- Corporate actions (contracts, divestments, restructuring) remain key stock-specific catalysts.
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