Local shares were pushed into positive territory yesterday following a surprising set of industrial production figures that eased worries about a prolonged economic weakness setting in.
The better-than-expected numbers from the manufacturing sector helped lift the benchmark Straits Times Index (STI) 0.88 per cent, or 21.46 points, to 2,472.28.
Gainers outpaced losers 231 to 192, with 1.25 billion shares worth $890.48 million changing hands.
Singapore Exchange market strategist Geoff Howie said the morning momentum came from renewed hopes for more fiscal stimulus from the United States ahead of its Nov 3 presidential election.
While Europe opened weaker, whittling away that impact in the afternoon, key Singapore shares were able to hold much of their ground, thanks to those industrial production numbers that "blew expectations out of the water", he said.
Singapore's factory output soared 13.7 per cent year on year last month, led by strong growth in electronics.
United Overseas Bank economist Barnabas Gan noted: "Perceived risks arising from the Covid-19 pandemic appear to have greatly diminished at this juncture, owing to the sharp fall in infection rates in Singapore."
Among STI constituents, Dairy Farm International and CapitaLand Mall Trust were the best-performing counters. Dairy Farm rose 1.5 per cent to US$3.96; CapitaLand Mall Trust edged up 1.5 per cent to $1.99.
Meanwhile, Singtel continued to see heavy trading with over 23 million shares changing hands as the stock climbed 0.9 per cent to $2.14.
Other active counters included Thai Beverage, which closed flat at 58.5 cents. CGS-CIMB upgraded the beverage giant to "add" from "hold" on Thursday and kept the target price at 70 cents.
Only two STI stocks ended the day in the red. SGX shed 0.4 per cent to $9.00 and Sats fell 0.4 per cent to $2.77.
Elsewhere in Asia, several regional benchmarks ended higher.
South Korea's Kospi closed up 0.27 per cent, rebounding from a near two-month low on Thursday. Japan rose 0.51 per cent. Malaysia climbed 0.56 per cent.
The Hang Seng Index bucked the trend, falling 0.32 per cent as fears of rising coronavirus infections and reimposition of containment measures continue to weigh on traders. China's benchmark Shanghai Composite Index dropped 0.12 per cent.
A surge among Australian banks on news that lending rules would be eased helped the ASX in Sydney to add 1.51 per cent, allowing it to end the week 1.7 per cent ahead.
