Asian Tech Rally Could Heat Up Singapore's Market On Tuesday

Singapore’s equity market is primed for potential gains as regional sentiment shifts favorably. After a brief pullback, the Straits Times Index has stabilized near the 4,500-point threshold, with Tuesday’s session likely to benefit from strong international tailwinds—particularly the ongoing technology and energy sector momentum.

Market Backdrop Strengthens Outlook

Wall Street delivered impressive performance on Monday, setting a constructive tone for Asian bourses. The Dow advanced 202.86 points (0.44%), closing at 26,448.27, while the tech-heavy NASDAQ surged dramatically by 598.92 points (2.69%) to 22,872.01. The S&P 500 climbed 102.13 points (1.55%) to 6,705.12. This bullish move was underpinned by buyers accumulating positions at more reasonable valuations after last week’s concerns about rate outlooks and company valuations. Encouraging signals around Russia-Ukraine peace negotiations further buoyed sentiment.

Technology stocks were the clear winners, with semiconductor shares leading the charge—the Philadelphia Semiconductor Index jumped 4.4 percent. Computer hardware and networking stocks also demonstrated robust strength, propelling the NASDAQ higher. Crude oil benefited from an optimistic demand outlook, with West Texas Intermediate futures for January delivery gaining $0.73 (1.26%) to settle at $58.79 per barrel.

Local Index Shows Resilience

The STI closed Monday’s session at 4,496.63, gaining 27.49 points or 0.62 percent, after trading within a 4,459.83-4,504.48 range. The advance reversed the prior session’s two-day losing streak that had seen a modest 7-point decline.

Performance was mixed across sectors. Among major components, standout gainers included Hongkong Land, which surged 3.95 percent, Keppel Ltd climbing 2.63 percent, and CapitaLand Ascendas REIT advancing 1.80 percent. Other notable risers encompassed CapitaLand Integrated Commercial Trust (up 1.29%), CapitaLand Investment (up 1.15%), SembCorp Industries (up 1.48%), SingTel (up 1.05%), Thai Beverage (up 1.08%), Mapletree Industrial Trust (up 1.00%), and UOL Group (up 0.94%).

On the downside, Yangzijiang Financial stumbled 1.03 percent, while Genting Singapore declined 0.68 percent and Yangzijiang Shipbuilding slid 0.60 percent. DBS Group edged down 0.54 percent, though losses were generally contained. Real estate, financial, and industrial stocks presented a mixed picture overall.

Economic Data in Focus

Singapore investors will be watching Q3 gross domestic product figures released later today. Economists anticipate quarter-on-quarter growth of 1.3 percent and year-over-year expansion of 2.9 percent, compared with the previous quarter’s 1.4 percent and 4.5 percent respectively. This data release could influence near-term market direction as traders assess the underlying economic momentum supporting local equities.