Key Points

• STI: The Straits Times Index closed Thursday down 0.1% (8.21 points) at 5,667.67, with DBS and OCBC lower but UOB up 1.2%.
• Local catalyst: Chip-tester $AEM Holdings (AWX.SG)$ rose 3.8% as Micron's record quarter lifted the semiconductor complex; 45% of forecasters now expect MAS to steepen the S$NEER slope in October.
• US overnight: The S&P 500 added 0.19% to 7,666.45 as chip stocks rallied and Treasury yields eased from their highest since 2002.
• Today: September US nonfarm payrolls (consensus +84,000, jobless rate 4.1%) land at 8.30pm SGT — the week's key macro event.

Singapore Open

The Straits Times Index slipped 0.1%, or 8.21 points, to 5,667.67 on Thursday, holding below September's record close of 5,801.96 as the three local banks split. $DBS (D05.SG)$ eased 0.2% to S$77.36 and $OCBC (O39.SG)$ fell 1.4% to S$31.55, while $UOB (U11.SG)$ added 1.2% to S$43.34. Losers outnumbered gainers 298 to 177 across the broader market, with about 1.3 billion shares worth S$2.6 billion changing hands.

The chip complex was the session's bright spot. $AEM Holdings (AWX.SG)$ — a semiconductor test-equipment maker — rose 3.8% to S$10.17 to top the iEdge SG Next 50, catching the global memory rally sparked by Micron's blowout results. That is the cleanest local read-through from an overnight session led by US chip stocks.

Singapore Macro

The local macro backdrop is tilting toward tighter policy. In the September MAS Survey of Professional Forecasters, economists lifted 2026 GDP growth to about 5% from 3.5% in June — after Q2 expanded 5.7% year on year — with core inflation seen near 2%. Crucially, 45% of respondents now expect MAS to steepen the S$NEER slope at October's policy review, up from 30% in June.

For SGX investors the transmission is direct: a stronger-SGD stance and a positive output gap tend to favour the deposit-heavy banks through wealth inflows and firmer net interest margins, while a steeper yield backdrop squeezes REIT financing costs. That gap is already visible — the STI is up roughly 23% year to date, while the FTSE ST All-Share REIT Index has shed about 8% over the same stretch. On the micro side, MAS has introduced a S$16 million market-making sleeve to support liquidity in SGX equities, and OCBC Securities will scrap minimum commissions for online SGX trades, with the initial board-lot-size reduction on Oct 5 covering 11 stocks priced above S$10, including the three banks.

US Overnight

US stocks recovered from early losses to close modestly higher on Thursday, snapping a three-day losing streak as long-dated Treasury yields retreated from their highest levels since 2002. The S&P 500 rose 0.19% to 7,666.45, the Nasdaq Composite inched up 0.04% to 26,871.60, and the Dow added 20.51 points, or 0.04%, to 50,926.56. A post-Micron rebound in semiconductors and cooling bond yields outweighed the drag from elevated oil prices and Middle East supply risks.

Key Movers

$Micron (MU.US)$ — reported record fiscal Q4 revenue of about $54.2 billion and adjusted EPS of $33.42, both well above consensus (revenue $51.5 billion, EPS $31.82), and guided fiscal Q1 2027 revenue to about $61.5 billion versus a roughly $56.5 billion Street view. The AI-driven memory upcycle lifted DRAM and storage names across the board, with $Nvidia (NVDA.US)$ adding more than 1% to $230.86 in sympathy — the direct template for Singapore's semiconductor supply chain.

$Accenture (ACN.US)$ +23% — the IT-services bellwether surged to a seven-month high after fiscal Q4 revenue rose 6.3% to $18.7 billion with new bookings up 4%, and it guided fiscal 2027 revenue growth of 3%–6% on strong AI-services demand, leading the entire IT sector higher.

$Alphabet (GOOGL.US)$ +~2% — shares gained after the company unveiled Gemini 4 Argon, its flagship model that leads on coding and cybersecurity benchmarks. The debate now is whether Google can convert model leadership into consumer AI agents, where Meta's Muse and OpenAI's Dots have grabbed the momentum.

After hours, $Nike (NKE.US)$ fell as much as 6%. Fiscal Q1 revenue of $11.21 billion missed the $11.33 billion consensus (down 4% year on year), Greater China slumped 22%, and fiscal 2027 guidance for a high-single-digit revenue decline and adjusted EPS of $1.15–$1.35 fell well short of the roughly $1.66 the Street expected — even though Q1 EPS of $0.48 beat the $0.44 estimate. The stock was still moving at time of writing.

Asia Pre-Market

US futures were little changed heading into Friday, with S&P 500 futures near flat as traders waited for the September jobs report. Oil extended its gains: WTI rose about 2% to around $92.5 a barrel and Brent reclaimed $100, after Chinese refiners reportedly suspended October fuel exports, tightening an already war-constrained market. Gold edged up 0.5% to $4,177.76 an ounce, while Bitcoin traded near $84,700, up about 1.3% on the day. For SGX, firm oil keeps energy-sensitive names in focus while the chip-led bid favours the electronics supply chain, and the stronger-SGD policy tilt tempers imported-fuel inflation.

Today's US Earnings and Economic Calendar

No noteworthy US earnings are due Friday; this week's marquee reports have already landed. The main event is the September jobs report, which will set the tone for rate expectations.

Earnings Spotlight — $Micron (MU.US)$. Consensus was $31.82 adjusted EPS on $51.5 billion revenue; Micron delivered $33.42 on $54.2 billion and guided next quarter to roughly $61.5 billion in revenue and $38.15 in EPS, both far above the Street. The read-through for Singapore is direct: memory and HBM demand feeds the same AI-hardware supply chain that supports $AEM Holdings (AWX.SG)$. The payrolls release this evening at 8.30pm SGT will test whether the chip-led risk-on bid can survive a firmer rate backdrop.

One More Thing

The STI grinding just below its September record while chip names rally and banks are mixed looks more like rotation than a broad risk-off signal. The question for SG investors is whether tonight's US payrolls keeps the Fed on hold — preserving the higher-rate backdrop that has supported bank margins — or forces a re-pricing that spills into the S$NEER and REIT funding costs. Watch the 10-year Treasury yield and the MAS October review as the two dials, and treat the chip-led bid and the bank dip as separate trades rather than one market call.

Sources: The Business Times (Oct 1 Singapore close and bank prices), CNBC (US close, Nike Q1, September payrolls preview), Micron Technology investor relations and Investing.com (Micron Q4 results).

This briefing is compiled with AI assistance from market data and wire reports, and reviewed by the Longbridge editorial team before publication.

This briefing is for informational purposes only and does not constitute investment advice.