Singapore stocks rise as China unveils new stimulus measures

Optimism over Chinese moves to stimulate its economy kicked some life back into regional markets yesterday and allowed investors to start the weekend with a bit of a spring in their step.

The better mood drove the Straits Times Index (STI) up a robust 1.6 per cent, or 49.87 points, to close at 3,240.58 with gainers easily outpacing losers 340 to 170, after 1.81 billion shares worth $1.54 billion changed hands.

Saxo Capital Markets Singapore market strategist Charu Chanana attributed the rise in Asian equities to the larger-than-expected 15 basis point cut in Chinese banks' five-year loan prime rate (LPR) to 4.45 per cent.

"After a mixed US session overnight, Asian equities were relieved from China's LPR cut that exceeded market expectations and may provide support to the ailing property sector," she noted.

Among major regional indices, Hong Kong's Hang Seng surged 3 per cent, the Nikkei 225 in Tokyo gained 1.3 per cent, South Korea's Kospi rose 1.8 per cent, the Jakarta Composite climbed 1.4 per cent, while the Kuala Lumpur Composite slipped 0.02 per cent. Australian shares were up 1.2 per cent ahead of today's federal election.

The regional rebound came despite another shaky day on Wall Street with the Dow Jones Industrial Average down 0.7 per cent while the S&P 500 slid 0.5 per cent and Nasdaq dipped 0.2 per cent.

The top STI performer for the day was Jardine Matheson Holdings, which advanced 4.4 per cent to close at US$55.61.

The three banks were in the black yesterday. DBS Group Holdings rose 1 per cent to $31.20, UOB jumped 3.2 per cent to $29.42 while OCBC Bank rose 1 per cent to $11.75.

No STI counters ended lower.

Chinese electric vehicle maker Nio launched its secondary listing on the Singapore Exchange. Its shares closed at US$17.30, up 2.4 per cent, or 40 US cents, from the counter's debut price of US$16.90.