Singapore shares end higher on hopes of more stimulus measures in Europe, China

Expectations of new stimulus measures in Europe and China gave a lift to the local stock market. -- ST PHOTO: KUA CHEE SIONG
Expectations of new stimulus measures in Europe and China gave a lift to the local stock market. -- ST PHOTO: KUA CHEE SIONG

SINGAPORE - Expectations of new stimulus measures in Europe and China gave a lift to the local stock market.

The benchmark Straits Times Index added 20.4 points or 0.6 per cent to 3,354.5 on Wednesday, its third straight day of gains.

Turnover was relatively healthy, with two billion shares worth some $1.1 billion changing hands, compared with the 1.2 billion shares worth $949.7 million traded the previous day.

The European Central Bank (ECB) is slated to release its monetary statement on Thursday.

Markets are anticipating the ECB to announce a round of quantitative easing measures in the form of a bond-buying programme to boost the stuttering economy in the eurozone.

Analysts say the size of the programme could be anywhere between 500 billion and 600 billion euros.

Expectations are also rife that China could embark on fresh moves to ease its monetary policy in order to support slowing economic growth.

Regional markets also rose in tandem: Shanghai jumped 4.7 per cent, Hong Kong rose 1.7 per cent, while Seoul gained 0.2 per cent.

The only exception was Tokyo, which dropped 0.5 per cent after the Bank of Japan disappointed investors by not announcing new monetary stimulus measures after its meeting.