Singapore shares posted their fifth straight win to close 36.7 points or 1.4 per cent higher to 2,689.61 yesterday, buoyed by significant gains across major bourses in the region.
The rise was led by a renewed feel-good factor on the back of upbeat data signalling a global turnaround - despite the cloudy economic outlook as Covid-19 infections continue to climb globally.
Analysts warn that the rally is driven by liquidity rather than fundamentals and risk aversion could shatter the bubble if fundamentals fail to catch up or if generous fiscal and monetary interventions wane.
FXTM chief market strategist Hussein Sayed said: "Investors trying to find a negative correlation between stock-market performance and Covid-19 infections are having a difficult time. There doesn't seem to be one at the moment and that's evident in Monday's robust rally.
"The more asset prices disconnect from their core fundamentals, the more likely we will see a sharp correction occurring in the future."
Key gauges rose in Japan, Taiwan, South Korea and Malaysia, with Hong Kong and China posting gains of nearly 4 per cent and 6 per cent, respectively. Australia bucked the trend and declined 0.7 per cent.
Traders have piled back into stocks in a major way in recent months.
AxiCorp's chief global market strategist Stephen Innes said: "The global economic data and positive coverage on potential Covid-19 vaccines and treatments represent a... whirligig of positive news that is overwhelming gnarly headline flows around the daily virus case counts in the US."
On the Singapore bourse, turnover came in at 1.86 billion shares worth $1.17 billion. All but one counter - it was unchanged - posted gains. DBS, OCBC Bank and United Overseas Bank led the pack and added 16.7 index points collectively to the Straits Times Index (STI).
Hospitality real estate investment trusts chalked up sweet gains fuelled by positive news that Singapore hotels will reopen for staycations. CDL Hospitality Trusts (CDLHT) rose 3.7 per cent to $1.11.
DBS Research said the CDLHT portfolio, which includes six hotels in Singapore including Orchard Hotel and Grand Copthorne Waterfront Hotel, is one of the "prime" beneficiaries.
Shares of Hi-P International, a mainboard-listed electronics contract manufacturer, drew significant activity, jumping nearly 16 per cent to $1.24; nearly 16 million shares changed hands.
The unusual price movements prompted a trading-activity query from the Singapore Exchange.