Encouraging export numbers and signs that major economies are gradually unwinding full lockdown measures gave local investors enough reasons to start the week on a positive note yesterday.
The optimism lifted the Straits Times Index 15.73 points or 0.62 per cent to 2,539.28 on trade of 1.67 billion shares worth $1.02 billion, with 202 gainers to 186 losers.
Elsewhere, shares in Japan, Hong Kong and South Korea posted modest gains. Gold traded at its highest in seven years, while crude surged over US$30 a barrel for the first time since March. Australian shares shot up 1 per cent on the back of a surge in commodity prices.
Singapore's non-oil domestic exports unexpectedly rose for a third straight month in April, suggesting that manufacturing might escape a recession, although analysts were quick to warn it is premature to conclude the sector is out of the woods.
Market sentiment has been holding up in recent weeks despite a string of weak economic data, especially on the labour market front.
OCBC Bank's Market Stress Index shows global market anxiety is now at a third of the peak level in late March, but the bank's economist Wellian Wiranto warned: "While encouraging, a host of potential bugbears remains on the horizon and continues to demand a close watch.
"The risk of new waves of infection is still breathing down our necks. So is any escalation of US-China tensions."
The three banking stalwarts led the gains, contributing 5.6 index points. United Overseas Bank added 0.6 per cent to $19.51, DBS put on 0.42 per cent to $19.08, while OCBC rose 0.8 per cent to $8.80. Losses were led by Singapore Airlines, down 4.6 per cent to $3.72.
The most active was Forise International, with 114 million shares worth $1.3 million exchanging hands. Its stock rose 11 per cent to one cent after it announced it had won a management consulting services contract with a logistics company in the United Arab Emirates.
"Good news for the market and the economy as a whole is that businesses worldwide are reopening, albeit in fits and starts," AxiCorp's chief global market strategist Stephen Innes said.
"While restaurants are opening at minimal capacity and mall traffic remains depressed, traffic congestion is beginning to tick significantly higher, suggesting that people feel confident leaving home.
"Indeed, this is huge as the global recovery will fall 100 per cent on the back of consumer confidence."
