The Singapore stock market has moved higher in consecutive trading days, collecting more than 20 points or 0.6 percent along the way. The Straits Times Index now sits just beneath the 3,600-point plateau although the rally may stall on Tuesday.
The global forecast for the Asian markets is soft, ahead of key economic and earnings data later this week. The European markets were mixed and flat and the U.S. bourses were solidly lower and the Asian markets are tipped to follow the latter lead.
The STI finished modestly higher on Monday following gains from the financial shares and mixed performances from the properties and industrials.
For the day, the index rose 1006 points or 0.28 percent to finish at 3,599.19 after trading between 3,583.62 and 3,624.18.
Among the actives, CapitaLand Integrated Commercial Trust lost 0.47 percent, while CapitaLand Investment tumbled 1.92 percent, City Developments dipped 0.37 percent, Comfort DelGro dropped 0.67 percent, DBS Group climbed 0.84 percent, Emperador strengthened 1.18 percent, Genting Singapore advanced 0.56 percent, Hongkong Land accelerated 4.83 percent, Keppel Ltd slid 0.45 percent, Mapletree Pan Asia Commercial Trust sank 0.66 percent, Mapletree Industrial Trust slumped 0.80 percent, Mapletree Logistics Trust declined 1.36 percent, Oversea-Chinese Banking Corporation collected 0.40 percent, SATS retreated 1.83 percent, Seatrium Limited soared 5.53 percent, SembCorp Industries eased 0.18 percent, Singapore Technologies Engineering shed 0.64 percent, SingTel fell 0.63 percent, Thai Beverage spiked 2.88 percent, Wilmar International jumped 2.10 percent, Yangzijiang Financial surged 7.41 percent, Yangzijiang Shipbuilding rallied 2.41 percent and Keppel DC REIT and UOL Group were unchanged.
The lead from Wall Street is weak as the major averages opened lower on Monday and only moved lower as the day progressed, ending near session lows.
The Dow tumbled 398.51 points or 0.94 percent to finish at 41,954.24, while the NASDAQ plunged 213.95 points or 1.18 percent to close at 17,923.90 and the S&P 500 sank 55.13 points or 0.96 percent to end at 5,695.94.
The weakness on Wall Street came as traders reassessed their expectations for the outlook on interest rates. After Fridays upbeat jobs data, traders now expect only a quarter-point cut in interest rates at the Federal Reserves next policy announcement on Nov. 7.
The mood is cautious as investors await readings on consumer price and producer price inflation later in the week, as well as earnings announcements from several top banks.
On the geopolitical front, Israeli defense forces intensified air strikes targeting Gaza and the Lebanese capital of Beirut simultaneously on the first anniversary of Hamas cross-border attack in Israel, which triggered the Middle East war.
Oil prices rose sharply on Monday amid the rising possibility of disruptions in supply in the Persian Gulf due to escalating tensions in the Middle East. West Texas Intermediate Crude oil futures for November jumped $2.76 or 3.71 percent at $77.14 a barrel, the highest close in nearly eight weeks.