Singapore banking shares fell for a second straight session after JPMorgan Chase & Co. cautioned that climbing long-dated bond yields would weigh on the third-quarter profits of Southeast Asian lenders.

DBS Group Holdings Ltd dropped as much as 3.69%, while United Overseas Bank Ltd and Oversea-Chinese Banking Corp each declined more than 4%. The three lenders were the heaviest weights on the benchmark Straits Times Index, which became the weakest 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.