Singapore Stocks Experience Strong Gains

Singapore’s stock market is on track for its eighth consecutive session of gains on Thursday, achieving its longest winning streak since November 2022. This positive trend is primarily fueled by decreasing inflation and a rising demand for defensive stocks, which together are bolstering the benchmark index.

Analysts at Maybank suggest that Singapore’s modest baseline reciprocal tariff of 10%, combined with a construction surge, declining interest rates, and greater fiscal support, will alleviate the consequences of the trade conflict.

The island nation also announced its lowest core inflation rate in four years on Wednesday, which indicates reduced costs for household items and utilities as the national election approaches.

According to Zane Aw, an analyst at Phillip Securities Research, the gains in Singaporean stocks are probably a result of the market’s reputation as a safe haven in the face of global trade instability. Investors are increasingly favoring high-yield industries like telecommunications, utilities, and defense.

Currencies throughout the region saw limited movement, while an initial stock market upswing waned due to conflicting signals from the Donald Trump administration on tariffs imposed by China.

Taipei shares saw a decrease of 0.8% after a significant 4.5% increase on Wednesday, while South Korean and Thailand equities saw declines of 0.1% and 0.2%, respectively.

Stocks in both the Philippines and Indonesia experienced a decrease of 0.2%.

Among currencies, the South Korean won experienced the most significant decline, falling 0.6% against the stable US dollar. The Thai baht, Taiwan dollar, and Indonesian rupiah all experienced minor decreases of around 0.1%.

Elsewhere, sentiment toward Malaysia was more optimistic, with growing expectations of interest rate cuts following the country’s weaker-than-expected GDP figures released last week and overall concerns about trade.

Citigroup maintains its forecast of a 30% probability that the Malaysian central bank will reduce interest rates by 25 basis points in both May and July, as stated in a research note.