US inflation data hits regional markets; STI up 0.2%

SINGAPORE equities ended Thursday (Feb 13) higher, even as US data – which indicated sticky inflation – hit regional markets.

The Straits Times Index (STI) gained 7.96 points, or 0.2 per cent, to 3,882.58.

Seatrium led the STI, extending yesterday’s rally to end 10.9 per cent, or S$0.25, higher at S$2.55.

Investor sentiment was lifted as the offshore and marine specialist announced on Thursday that it inked a memorandum of understanding with BP Exploration & Production to provide engineering, procurement, construction and commissioning services for the Tiber floating production unit.

Thai Beverage was the biggest loser on the index, down 2.9 per cent, or S$0.015, at S$0.50.

Across the broader Singapore market, gainers outnumbered losers 281 to 261, after 1.7 billion securities worth S$1.5 billion changed hands.

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Regional markets closed the day mainly lower after the release of January inflation data in the US. Hang Seng dropped 0.2 per cent, the CSI 300 Index was down 0.4 per cent and the Bursa Malaysia Kuala Lumpur Composite Index lost 0.7 per cent.

Alvin Liew, senior economist of UOB, noted that the January data showed a hotter-than-expected report across all categories, including food, energy and housing in the US.

The US headline inflation rose 3 per cent, instead of moving towards the US Federal Reserve’s 2 per cent target. Core inflation, which excludes food and energy, grew 3.3 per cent.

“We still anticipate headline and core inflation to cool further into 2025 (in part due to base effects), but there are upside price risks, including higher food and energy prices, reaccelerating wage growth pressures, higher housing and reconstruction costs due to the Los Angeles wildfires, and the biggest uncertainty is US President Donald Trump’s immigration and trade tariff policies.

“Our 2025 headline and core inflation forecasts are at 2.5 and 2.6 per cent, respectively, with the balance of risk tilted towards the upside,” he added.