STI down 0.4% at 3,145.84, tad off lows but unlikely to regain positive ground as regional bourses down sharply, hit by China tightening jitters.

UOB KayHian reiterates neutral stance on STI, expects to see possible correction moving ahead; says technicals remain bearish, with 3,118 support, then 3,040.

But on long-term view, CIMB economist Song Seng Wun says China tightening better sooner rather than later.

“It’s about allowing the train to just move at a more manageable pace, not run ahead...tightening at the early part of the cycle basically means there is still growth going forward, therefore earnings are still being supported by growth, rather than tightening at the latter part which means chances of a much sharper slowdown in growth and earnings.”