STI joins global rally on hopes for Ukraine-Russia peace talks

Local shares headed north for the third straight session as investors here and across the region welcomed prospects for a de-escalation of the Russia-Ukraine war.

The growing sense of optimism was reflected on Wall Street overnight, where the Dow Jones Industrial Average and S&P 500 both closed 1 per cent higher while the Nasdaq added a robust 1.8 per cent.

Local investors took the hint yesterday and pushed the benchmark Straits Times Index (STI) up 0.25 per cent or nine points to 3,442.61.

There were 1.39 billion shares worth $1.39 billion traded on the broader market with gainers outpacing losers 295 to 192.

Shares in most Asian markets joined the global rally.

South Korea's benchmark Kospi went up 0.21 per cent, Hong Kong's Hang Seng Index added 1.39 per cent and the Jakarta Composite climbed 0.59 per cent while the Shanghai Composite closed 1.96 per cent higher.

Australian shares enjoyed a 0.7 per cent rise on the back of the expansionary Federal budget, which suggests conditions will stay favourable in the months ahead.

Japan's Nikkei 225 went against the trend to finish 0.8 per cent lower, driven down as the dollar slipped against the yen.

On Tuesday, Russia had said it would reduce military operations near Ukrainian capital Kyiv, but Moscow's lead negotiator said this does not represent a ceasefire.

The STI's gains were led by CapitaLand Integrated Commercial Trust, which climbed 1.79 per cent to $2.28. It was also the most actively traded counter on the index, with 34.4 million shares worth $78.1 million changing hands.

Local banks also reaped gains as the market heads to end of the quarter today. OCBC added 0.48 per cent to $12.45, UOB rose 0.47 per cent to $32.31, while DBS closed 0.45 per cent up at $36.13.

Jardine Matheson was at the bottom of the table, falling 3.62 per cent to US$56.98.