Singapore shares fell as much as 0.6 percent on Wednesday, weighed down by Oversea-Chinese Banking Corp and Keppel Corp.
Asian shares extended falls while U.S. stocks fell for a second straight day overnight, as the recent rise in global bond yields weighed on equities.
MSCI's broadest index of Asia-Pacific shares outside Japan added to the previous day's losses and dipped 0.2 percent, after reaching a record high on Monday. South Korea's KOSPI rose 0.3 percent and Japan's Nikkei dropped 0.1 percent, Reuters data showed.
The Straits Times Index declined 0.42 percent or 15 points to 3,533. It ended 0.79 percent lower on Tuesday, taking the year-to-date gains to about 4 percent.
The city-state's top lenders Oversea-Chinese Banking Corp dropped 0.4 percent while United Overseas Bank and DBS Group Holdings edged up 0.1 percent each.
Active stocks included, KimHeng Offshore climbing 6 percent to S$0.12 while Jiutian Chemical dropped 1.3 percent to S$0.07. Diversified conglomerate Keppel Corp dropped 0.7 percent.
CapitaLand Retail China Trust Management fell 1.2 percent after it reported an unchanged fourth-quarter distribution per unit and a drop in revenue.
Shares in Noble Group gained 11 percent after falling as much as 23 percent in the previous session. Noble on Wednesday denied shareholder Goldilocks allegations, calling them 'unfounded'.
About 2.3 billion shares worth S$1.9 billion changed hands, with losers outnumbering gainers 256 to 195.