STI

STI: extends its slump, as investors worry about the looming Fed cuts to bond buying and monetary stimulus, with much speculation that this could take place as early as Sep. Meanwhile, Asia's role as the world's growth engine is waning as economies across the region weaken and investors pull out billions of dollars. The clouds forming in Asia as liquidity tightens and China’s slowdown curbs demand for commodities and goods are fueling a selloff of emerging-market stocks, reversing a flow of money into the region in favor of nascent recoveries in the U.S. and Europe. The Indian rupee fell to a record low yesterday, Thailand is in recession and Indonesia’s widest current-account deficit pushed the rupiah to the lowest level since 2009. Chinese banks’ bad loans are rising and economists forecast Malaysia will post its second straight quarter of sub-5% growth this week. Amidst the bad news, expect the Singapore mkt to be dragged into the quagmire as well. Banks are a big constituent in the benchmark STI, hence one of the likely proxies for sell of if macro funds wish to express their bearish view on the market.