Asian Markets Poised for Recovery as Wall Street Strength Signals Support for Singapore Equities

The Singapore equity market faces a potential turnaround after consecutive losses, with the Straits Times Index trading just below the 4,570-point threshold following a marginal decline of 0.02 percent. Momentum from the U.S. markets suggests Monday could bring relief to the beleaguered bourse.

Wall Street’s Bullish Momentum Provides Tailwind

Friday’s trading across major U.S. indices demonstrated solid upside momentum. The Dow Jones Industrial Average climbed 183.04 points, representing a 0.38 percent gain to settle at 48,134.89, while the NASDAQ advanced 301.26 points or 1.31 percent, closing at 23,307.62. The S&P 500 captured 59.74 points, or 0.88 percent, finishing at 6,834.50. This strength follows a week where the NASDAQ added 0.5 percent, the S&P 500 rose 0.1 percent, though the Dow retreated 0.7 percent for the period.

The technology sector emerged as the primary driver, buoyed by robust earnings reports and diminishing concerns regarding equity valuations. This performance backdrop is expected to carry through to Asian trading sessions.

Singapore Market Activity: Mixed but Stabilizing

The STI concluded Friday’s session at 4,569.78, a marginal slip of 0.83 points or 0.02 percent, though notable individual stock movements provided complexity. Real estate and commercial trust positions showed resilience, with CapitaLand Investment gaining 1.89 percent, CapitaLand Integrated Commercial Trust advancing 0.43 percent, and CapitaLand Ascendas REIT appreciating 0.72 percent.

Standout performers included City Developments, which surged 4.04 percent, UOL Group spiking 1.88 percent, and Wilmar International improving 0.66 percent. Conversely, weakness materialized in Yangzijiang Shipbuilding, declining 2.88 percent, Thai Beverage retreating 1.08 percent, and SembCorp Industries slumping 0.51 percent.

The financial and industrial sectors presented a mixed picture, with DBS Group and Keppel DC REIT each sliding 0.45 percent, while banking names like Oversea-Chinese Banking Corporation collected 0.26 percent.

Technology and Energy to Lead Monday’s Session

Market forecasters anticipate that technology and oil-linked equities will lead the recovery, capitalizing on favorable global conditions. The industrial sector’s earlier losses may find offset through strength in defensive and cyclical positions.

Energy Markets Reflect Geopolitical Tensions

Crude oil prices strengthened on Friday amid supply-side concerns stemming from escalating U.S.-Venezuela relations. West Texas Intermediate crude for January delivery rose $0.47, representing a 0.84 percent increase, to close at $56.62 per barrel. This dynamic is expected to continue supporting energy-related equities throughout the region.

Economic Backdrop

U.S. existing home sales registered a modest uptick in November, though consumer sentiment readings for December came in below forecast expectations according to University of Michigan data, suggesting tempered optimism in the world’s largest economy despite equity market strength.