Fed Chair Kevin Warsh delivered an unexpected hawkish surprise in his keynote speech at the Jackson Hole annual meeting on Friday, warning that inflation trends have not yet "significantly improved" and raising the probability of a September rate hike from about one-third to even odds.

The rate hike news will weigh down the stock market, while bank lending stocks are expected to climb.

Catching this tailwind, shares of Singapore's three major banks are set to see another pullback after dividend payouts.