Singapore Stocks Return to Record Levels
The Straits Times Index in Singapore rose 31 points (0.7%) to 4,472, reaching a record high for the sixth consecutive session. This increase was driven by positive sentiment from a Wall Street rally and optimism over a potential U.S.-China trade deal. Additionally, expectations for U.S. Fed rate cuts supported risk appetite. However, caution remained ahead of upcoming PMI data from China. Key contributors to the gains included DBS Group (1.3%), Keppel Ltd. (1.1%), First Resources (3.7%), and Singapore Airlines (0.9%).
The Straits Times Index rose 31 points, or 0.7%, to 4,472 in early trade on Tuesday, revisiting a record high and extending gains for a sixth straight session.
A rally on Wall Street overnight lifted investor sentiment, amid optimism that the U.S. and China could sign a trade deal Thursday after negotiators reached a framework involving lower U.S. tariffs and Chinese concessions on rare earth exports.
Bets for further U.S. Fed rate cuts later this week and again in December also supported risk appetite.
Locally, the Monetary Authority of Singapore kept its policy stance unchanged in mid-October, noting that the economy remains resilient despite global trade headwinds.
Still, gains were capped by caution ahead of official PMI data in China, Singapore's top trading partner, later this week.
Producer manufacturing, process industries, and commercial services led the gains, with notable rises from DBS Group (1.3%), Keppel Ltd. (1.1%), First Resources (3.7%), and Singapore Airlines (0.9%).
