Singapore’s STI down 0.1% after Trump’s Apple tariff salvo; Asian markets mixed

[SINGAPORE] Singapore shares were down at Monday’s (May 26) open as regional markets traded mixed after US President Donald Trump on Friday threatened tariffs on Apple.

In the latest trade war salvo, Trump announced potential levies of 25 per cent for iPhones made outside of the US via a Friday social media post, before extending the tariff threats to a broader range of smartphone makers – including South Korea-based Samsung Electronics. 

The levies stand to reshape US trade around key consumer products and come amid a bid by the Trump administration to spur domestic manufacturing by shifting production of the devices to the US and away from Asia. Supply chains of companies such as Apple and Samsung have been concentrated in the region for years. 

The president said the levies would kick in by end-June.

Jose Torres, senior economist at Interactive Brokers, noted that the latest developments have pushed major equity benchmarks and sectors into the red, including the greenback.

“Investors are boosting their exposures to treasuries along the curve, commodities across the board, equity volatility protection instruments, and forecast contracts,” Torres said.

As at 9.01 am, the Straits Times Index (STI) slid 0.1 per cent or 4.02 points to 3,878.4. Across the broader market, gainers outnumbered losers 59 to 39 after 31.4 million securities worth S$34.6 million changed hands.

Oceanus was the most actively traded counter by volume, opening flat at S$0.005 with 9.2 million securities transacted. Other actively traded counters included Thai Beverage, which fell 2.2 per cent or S$0.01 to S$0.455, and ground handler Sats, which rose 1 per cent or S$0.03 to S$3.01. 

The trio of local banks were mixed at the open. DBS declined 0.2 per cent or S$0.07 to S$44.39 and OCBC fell 0.9 per cent or S$0.14 to S$16.15. UOB rose 0.4 per cent or S$0.14 to S$35.46. 

Across the region, major indices were mixed at Monday’s open. Japan’s Nikkei 225 advanced 0.7 per cent or 251.93 points to 37,412.4, Korea’s Kospi rose 0.8 per cent or 19.65 points to 2,611.74 and Malaysia’s FTSE Bursa Malaysia KLCI climbed 0.1 per cent or 0.93 points to 1,536.31.

Australia’s S&P/ASX 200 fell 0.1 per cent or 6.9 points to 8,354, Hong Kong’s Hang Seng dropped 0.4 per cent or 95.36 points to 23,505.9 and the Shanghai Stock Exchange Composite Index retreated 0.9 per cent or 31.82 points to 3,348.37.