Daily Markets Briefing: STI to open 0.5% lower

It ended the session flat.

According to IG Markets Singapore:

Asia suffered a volatile mixed bag yesterday as the Nikkei 225 rocketed 2.4% while the ASX 200 fell 1.5%. Sitting in the middle was the STI which ended the session flat.

Traders were preoccupied with the budget statement which tackled some hot button issues like foreign workers, income gaps and productivity. With many Western companies threatening to leave Singapore over the tightening labour market, the government faces a tough challenge as it looks to keep voters happy with foreign talent curbs.

The government will be tougher on companies hiring foreign managers and professionals while foreign worker levies were increased. This will make it even tougher for multinationals to operate on the island and could force many to relocate to cheaper bases. This morning we are pricing the STI to open 0.5% lower.