Singapore shares rose as higher earnings expectations lift market

SINGAPORE - Selected buying of blue chips helped the local stock market to avoid the falling in the red on Tuesday.

The Straits Times Index (STI) rose 16.2 points or 0.5 per cent to 3,434.24.

"Although the index is higher, it is only because of the focus on blue chips, noticeably ComfortDelgro, likely because of expectations of higher earnings," remisier Alvin Yong said.

Singapore rose along with Shanghai, which surged 1.5 per cent on hopes that the Chinese government could see more monetary stimulus measures.

Inflation in China fell to 0.8 per cent to its lowest level since November 2009, sparking hopes that the central bank could act to prevent disinflation.

"There is some speculation that China could cut interest rates, but it's too early to say, since they just lowered the reserve requirement ratio last week," said Mr Yong.

Other Asian bourses were weaker as ongoing concerns about whether Greece will leave the euro zone weighed on the markets.

Tokyo lost 0.3 per cent, Seoul dropped 0.6 per cent while Hong Kong was flat.

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