Most regional stock markets yesterday continued to build on Wednesday's gains after the US Federal Reserve signalled that interest rates are likely to stay unchanged in the near future.
Singapore's Straits Times Index (STI) saw gains in most sectors, except for real estate investment trusts (Reits). The blue-chip index advanced 21.77 points or 0.7 per cent to close at 3,194.67.
Elsewhere in the Asia-Pacific, benchmark indexes in Japan, Hong Kong, Malaysia, South Korea and Taiwan posted gains. Bucking the trend were Australia and China. In Australia, the ASX 200 was weighed down by financials, closing 0.6 per cent lower.
While investors were generally in a risk-friendly mood, there are still a couple of key developments that could sway global markets, including Britain's general election yesterday.
More important to investors in Asia is the Dec 15 deadline when United States tariffs on US$160 billion worth of Chinese imports will take effect, which has left some nervous. With the Sunday deadline looming, reports suggest US President Donald Trump will meet officials to talk about whether the tariffs will be enforced or delayed.
AxiTrader's chief Asia market strategist Stephen Innes noted: "But ultimately, the decision rests with Trump himself and that's where the inherent problem lies. President Trump is impossible to predict. So, unless you have some idea of the content of the Trump Twitter feed in advance, I suspect most traders will likely err on the side of caution."
STI trading volume stood at 1.12 billion shares worth $1.21 billion, with gainers outpacing losers 201 to 166.
Reits were the main laggards, with investors taking profit and sending the iEdge S-Reit Index down 0.9 per cent to 1,424.31.
The Fed putting a pause to interest rate adjustments was an expected outcome. Traders noted that Reits had already priced those effects late last month when Fed chair Jerome Powell first indicated the US central bank would be standing pat on rates.
The local banks ended higher. OCBC Bank added 1.6 per cent to $10.85, United Overseas Bank put on 1.2 per cent to $25.84 and DBS Group gained 1.8 per cent to $25.50.
Among energy plays, Rex International jumped 7.2 per cent to 17.9 cents on the back of higher oil prices after the Organisation of the Petroleum Exporting Countries said it is estimating a deficit for next year.
