Singapore bank stocks plunge as surging yields drag down profit outlook

JPMorgan warns that surging long-term bond yields will hurt Southeast Asian banks' third-quarter earnings, further intensifying the selloff in Singapore bank stocks. Shares of DBS Group and United Overseas Bank both fell more than 5%, while Oversea-Chinese Banking Corporation dropped as much as 4.8%, dragging down the benchmark Straits Times Index. Market concerns that high bond yields will weigh on book value and dividend payouts, combined with elevated valuations; JPMorgan analysts recommend that clients underweight Singapore bank stocks.