Singapore shares rise following Wall Street's gain overnight

SINGAPORE shares rose on Tuesday after a strong overnight lead from Wall Street as a key meeting of the United States Federal Reserve drew closer.

The benchmark Straits Times Index (STI) rose 13.8 points or 0.45 per cent to 3,067.57.

New York shares had risen on Monday - the Dow Jones Industrial Average was ahead by 0.82 per cent - after strong manufacturing numbers from the euro zone and the US. This rise provided a strong lead for the Asia-Pacific region on Tuesday.

The big question over most investors' minds is whether the Fed will start reducing its massive money-printing programme when its December policy meeting ends on Wednesday. Recent strong jobs data from the US had raised fears that the reduction - known as "tapering" will be announced on Wednesday but analysts point out that US inflation is still falling short of the target.

The Fed announcement about its meeting's results is expected before Asian markets open for trade on Thursday.

Gainers on Singapore's STI included index heavyweight SingTel, up five cents or 1.4 per cent at $3.61.

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