Singapore shares rebound on positive news flow from US

SINGAPORE - Shares went back into positive territory on Friday as some measure of calm returned to the market.

The Straits Times Index (STI) rose 13.52 points or 0.43 per cent to 3,167.73, just about on a par with the 3,167.43 level seen at the end of last year.

Gains for the full year were wiped out on Thursday when the STI lost 1.4 per cent as investors bailed out on worries about the global economy.

For the week, the STI lost 56.14 points or 1.7 per cent.

Shares stabilised in Asia after jitters in Wall Street were somewhat eased with the release of positive economic data from the United States.

Initial job claims in the US for the week ended Oct 11 fell to their lowest level since 2000, while industrial production rose in rose in September after sliding in August.

Comments made by St Louis Federal Reserve President James Bullard that the Fed could consider delaying the end of its bond purchase also lent support to the markets.

Ongoing concerns about the state of global economy however, capped gains.

Greece also worried investors with its plans to get out of a supervised bailout plan early, a move seen by analysts as a mistake as it could run out of funds.

Asian stock markets were mixed.

Tokyo dropped 1.4 per cent, Seoul declined 0.95 per cent, Shanghai lost 0.65 per cent but Hong Kong rose 0.53 per cent and Sydney closed up 0.32 per cent.

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