Asian Markets Rally on Optimistic Rate Outlook: Singapore's Friday Positive Performance

The Singapore stock market delivered positive results on Friday, continuing recovery momentum after snapping a four-day rally that had previously climbed over 100 points, representing a 2.1 percent surge. With the Straight Times Index hovering around the 4,740-point mark, investors are anticipating further upside movement when markets reopen on Monday. The positive tone is being fueled by renewed confidence in interest rate trajectories across global financial markets.

Global Momentum Drives Regional Performance

The positive sentiment originating from Western exchanges is cascading into Asian trading sessions. Both European and U.S. bourses demonstrated strength, establishing a favorable backdrop for regional indices. This synchronized global recovery reflects shifting expectations around monetary policy, with financial markets recalibrating based on employment data that suggested a slower-than-anticipated pace of job creation. Such readings have reinvigorated speculation about potential rate reductions in the coming months, even as the Federal Reserve is anticipated to maintain current rates at its upcoming policy decision.

Singapore Market Details

The STI advanced 5.59 points, or 0.12 percent, settling at 4,744.66 within a trading range of 4,723.08 to 4,750.31. Market breadth displayed mixed characteristics, with select blue-chip names showing notable movement. CapitaLand Investment surged 1.76 percent while DFI Retail Group spiked 1.79 percent. Hongkong Land demonstrated strong performance with a 3.20 percent climb. Among financial heavyweights, DBS Group and Keppel DC REIT both advanced 0.45 percent, whereas Oversea-Chinese Banking Corporation retreated 1.83 percent. Transportation stocks showed divergence, with Singapore Airlines declining 0.46 percent and SATS dropping 0.53 percent. Other notables included Singapore Exchange rallying 1.16 percent and Genting Singapore gaining 0.69 percent, while Keppel Ltd and SembCorp Industries both surrendered 0.66 percent.

Wall Street Leadership

The positive quotes from Friday’s U.S. session underscored broad-based strength across major benchmarks. The Dow Jones Industrial Average climbed 237.96 points or 0.48 percent to reach 49,504.07, marking a fresh record close. The NASDAQ Index surged 191.33 points or 0.81 percent to 23,671.35, while the S&P 500 added 44.82 points or 0.65 percent, settling at 6,966.28 and also hitting record territory. Weekly performance was equally impressive, with the Dow advancing 2.3 percent, the NASDAQ up 1.9 percent, and the S&P 500 gaining 1.6 percent. This positive momentum was underpinned by labor market data suggesting employment growth fell short of expectations, bolstering the case for eventual monetary easing.

Energy Markets React to Supply Dynamics

Oil prices accelerated amid concerns over near-term supply availability, compounded by geopolitical tensions and OPEC’s decision to moderate production growth targets. U.S. crude inventory levels also declined, adding to upward price pressure. West Texas Intermediate crude for February delivery increased $1.58, or 2.74 percent, to $59.34 per barrel, reflecting the broader positive sentiment extending into commodities.

The interconnected nature of global markets meant that positive signals from employment data resonated across multiple asset classes and geographic regions, establishing a constructive environment for risk assets heading into the week ahead.