Singapore shares fell as much as 0.6 percent on Wednesday, weighed down by financial stocks.
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.
At 0525 GMT, the Straits Times Index declined 0.36 percent or 13 points to 3,536. 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 0.7 percent, United Overseas Bank lost 0.2 percent while DBS Group Holdings fell 0.5 percent.
Active stocks included, KimHeng Offshore climbing 6 percent to S$0.12 while Jiutian Chemical dropped 1.3 percent to S$0.08 in afternoon trades.
CapitaLand Retail China Trust Management fell 0.7 percent after it reported an unchanged fourth-quarter distribution per unit and a drop in revenue.
Shares in Noble Group gained 2 percent after falling as much as 23 percent in the previous session. Shareholder Goldilocks has asked Singapore Exchange to probe Noble's proposed debt-for-equity rescue plan, which it believes favors management at the expense of shareholders.
About 1.1 billion shares worth S$915 million changed hands, with losers outnumbering gainers 225 to 145.