Optimism that the upcoming reporting season will not be the bloodbath many had been expecting gave local investors enough heart to send shares north yesterday.
The Straits Times Index (STI) responded to the good mood and extended Monday's gains, climbing 15.23 points, or 0.6 per cent, to 2,567.65. Gainers outnumbered losers 223 to 134 with 1.43 billion shares worth $1.04 billion done.
The more buoyant mood comes ahead of the third-quarter results season, with DBS Group Research analysts Yeo Kee Yan and Janice Chua noting that "the worst of the earnings cuts has passed".
Ascendas Reit (A-Reit) emerged as the best performer among the STI constituents yesterday, rising 3.44 per cent to $3.31.
The Reit's manager said on Monday that updates for the third quarter ended Sept 30 will be released on Oct 26, after trading hours.
DBS Group Research analysts Derek Tan and Dale Lai had said last month that A-Reit had "multiple structural tailwinds in place", which they believe "will drive earnings and capital values higher in the longer term".
Mapletree's trio were also among the day's top performers: Mapletree Logistics Trust gained 2.91 per cent, Mapletree Industrial Trust chalked up a 2.14 per cent gain, and Mapletree Commercial Trust added 2.07 per cent.
Jardine Strategic Holdings was last on the STI performance table, sliding 2.41 per cent to US$20.62.
Some Asian markets also made gains. The Nikkei 225 Index rebounded from Monday's fall to close up 0.18 per cent, and Shanghai shares inched up 0.04 per cent.
China reported strong trade data for last month, with exports rising 9.9 per cent year on year, and imports surging 13.2 per cent, returning the country to growth from a slump of 2.1 per cent in August.
United Overseas Bank economist Ho Woei Chen said US-China tensions, the upcoming US elections and the pandemic could "still pose some uncertainty for investors", but the "continued opening up of (China's) economy to foreign investments should bode well as global demand improves".
The Kospi ended its eight-day rally to close down 0.02 per cent after South Korea reported 102 new coronavirus cases. This marks the first triple-digit increase in six days.
Australian shares rose for a seventh straight day to close at a seven-week high - and 7.1 per cent ahead over the past seven days - partly on the back of Wall Street gains overnight.
