Singapore equities registered their first positive showing in five sessions on expectations of support measures by central banks to curb the economic fallout from the coronavirus outbreak.
The Straits Times Index (STI) yesterday ended 11.84 points, or 0.39 per cent, higher at 3,019.56. Elsewhere in the region, benchmarks in Australia, China, Malaysia, South Korea and Taiwan also finished with gains.
Bucking the trend was Japan, which closed lower.
Asian stocks had a bright start yesterday following a strong overnight performance for Wall Street.
Mr Vishnu Varathan, Mizuho Bank's head of economics and strategy for the Asia and Oceania treasury, noted that the "distinct 'risk on' mood in markets" was being driven by investors hoping for a coordinated response by central bankers from the Group of Seven industrialised nations against the spread of the coronavirus.
However, most early gains were trimmed after Reuters reported the meeting might not yield concrete measures.
Trading volume in Singapore was 1.78 billion securities while total turnover came to $1.83 billion.
Across the broader market, gainers outpaced decliners 244 to 214. Eleven of the blue-chip index's 30 components ended in the red.
Bets on a rate cut by the US Federal Reserve saw real estate investment trusts (Reits), often billed as key beneficiaries of reduced borrowing costs, among the best performing counters of the day.
Ascendas Reit was the STI's most active counter. Singapore's largest industrial Reit closed 2.9 per cent up at $3.20 with 38.6 million units changing hands. Mapletree Industrial Trust added 1.8 per cent to $2.79, and ESR-Reit added 0.9 per cent to 53.5 cents.
While markets have broadly rebounded after last week's dismal showing, Citi Research views "any short-term bounce in relatively less resilient Reits (hospitality and retail) as technical, rather than a sustained recovery".
Shares in Singapore Airlines continued to fall, closing 0.6 per cent lower at $8.10 after regional arm SilkAir indefinitely suspended flights to Hiroshima from March 27 due to weak demand. The national carrier is trading at near 11-year lows.
Among pennies, Nam Cheong added 14.3 per cent to close at 0.8 cent after the Malaysian offshore vessel builder revealed it had won chartering contracts for six offshore support vessels worth RM116.4 million (S$38.5 million).