Singapore bank shares extended declines for a second day after JPMorgan Chase & Co. warned that surging long bond yields will hurt third-quarter earnings for Southeast Asian lenders.

DBS Group Holdings Ltd, United Overseas Bank Ltd. and Oversea-Chinese Banking Corp. dropped more than 4% each. They were the biggest drags on the benchmark Straits Times Index, making it the worst performer in Asia.

"The surprise getting into third quarter 2026 is likely skewed negative for quite a few banks under our coverage," analyst Harsh Wardhan Modi wrote in an Oct. 7 note, advising clients to reduce their holdings.

The pullback in bank shares follows a standout year for Singapore equities, which had been supported by safe-haven demand amid geopolitical tensions and volatility driven by artificial intelligence.