Singapore stocks see biggest drop since 2008 global financial crisis

Markets reel as Trump refuses to roll back tariffs, with HK's 13.2% fall the worst in Asia

- Ovais Subhani

Asian markets extended a global stock rout on April 7 as US President Donald Trump refused to roll back global tariffs that could push the world into a recession.

Singapore's Straits Times Index (STI) plunged 8.57 per cent, or 328.2 points, to 3,497.66 when trading opened.

After trying to claw back losses, the STI closed down 7.5 per cent, or 285.36 points, its biggest one-day loss since the 2008 global financial crisis.

Across the whole market, 612 stocks fell while 137 rose. Trading volume was very heavy, with $4.2 billion worth of shares changing hands, nearly three times February's daily average.

"The STI has experienced sharp single-day declines in past periods of global uncertainty, including a 7.4 per cent drop in March 2020 during the Covid-19 pandemic and an 8.3 per cent fall in October 2008 during the global financial crisis," said Mr David Gerald, founder, president and chief executive of Securities Investors Association (Singapore).

"According to experts, if tariffs are sustained, they could contribute to higher inflation and slower global growth, which may in turn trigger further volatility and potential sell-offs in markets globally, including Singapore," he added.

Mr S. Nallakaruppan, president of the Society of Remisiers (Singapore), said that although the sell-off on the STI is steep, there is less panic this time compared with previous episodes such as the pandemic in March 2020 and the global financial crisis in 2008.

Investors have seen the market plunge and rebound many times, and are "more savvy" now, he said, adding that the panic-selling in the morning might have more to do with algorithmic trading.

Bank stocks were among the biggest losers in key equity benchmarks across Asia on expectations that sharper rate cuts by central banks, including the US Federal Reserve, in response to a recession would weigh on banks' earnings.