The Singapore stock market bounced higher again on Thursday, one day after halting the seven-day winning streak in which it had surged more than 140 points or 3.9 percent. The Straits Times Index now sits just above the 3,630-point plateau and it may add to its winnings on Friday.
The global forecast for the Asian markets is upbeat on optimism for the outlook for both the economy and for interest rates. The European and U.S. markets were sharply higher and the Asian bourses are expected to open in similar fashion - although there may be profit taking as the day progresses.
The STI finished sharply higher on Thursday with gains across the board, especially among the industrials and trusts.
For the day, the index collected 40.76 points or 1.13 percent to finish at 3,633..18 after trading between 3,588.79 and 3,633.38.
Among the actives, CapitaLand Integrated Commercial Trust jumped 1.89 percent, CapitaLand Investment skyrocketed 4.45 percent, City Developments increased 1.28 percent, DBS Group added 1.05 percent, Emperador slumped 1.15 percent, Genting Singapore gathered 0.59 percent, Hongkong Land perked 0.54 percent, Keppel DC REIT gained 0.89 percent, Keppel Ltd advanced 1.23 percent, Mapletree Pan Asia Commercial Trust soared 2.72 percent, Mapletree Industrial Trust picked up 0.39 percent, Mapletree Logistics Trust accelerated 2.08 percent, Oversea-Chinese Banking Corporation collected 0.78 percent, SATS was up 0.27 percent, Seatrium Limited surged 3.57 percent, SembCorp Industries spiked 2.64 percent, Singapore Technologies Engineering improved 1.49 percent, SingTel strengthened 1.50 percent, Wilmar International rose 0.63 percent, Yangzijiang Shipbuilding rallied 1.90 percent and Comfort DelGro, Thai Beverage, Yangzijiang Financial and Frasers Centrepoint Trust were unchanged.
The lead from Wall Street is broadly positive as the major averages opened solidly higher and remained firmly in the green throughout the session.
The Dow surged 522.09 points or 1.26 percent to finish at 42,025.19, while the NASDAQ rallied 440.68 points or 2.51 percent to end at 18,013.98 and the S&P 500 advanced 95.38 points or 1.70 percent to close at 5,713.64.
The rally on Wall Street came as traders continued to digest the Federal Reserves decision on Wednesday to slash interest rates by half of a percentage point.
Fed officials also forecast continued rate cuts over the coming months and into next year, generating optimism the central bank will be able to engineer a soft landing for the economy.
Adding to the optimism about the economy, the Labor Department released a report showing first-time claims for U.S. unemployment benefits fell to a nearly four-month low last week.
Oil prices moved higher on Thursday with rising tensions in the Middle East raising possibility of disruptions in supply. West Texas Intermediate Crude oil futures for October ended up by $1.04 or 1.5 percent at $71.55 a barrel.