Singapore shares see best session since June 2016 as markets recover
Singapore shares, which had fallen the most in 11 years on Monday, closed 1.8 per cent higher yesterday in their best session since June 2016.
Bourse operator Singapore Exchange rose 6.4 per cent and boosted the benchmark after reporting record February derivatives trading volumes a day earlier.
Other South-east Asian stocks ended higher too yesterday, rebounding from steep losses in the previous session on rising hopes that stimulus measures from global policymakers would help shield economies from the impact of the coronavirus.
US Treasury yields edged higher and oil prices recovered some losses after US President Donald Trump vowed to take "major" steps to blunt the economic impact of the coronavirus outbreak, while speculation of more rate cuts and fiscal stimulus measures by central banks across the world also rose.
"A combination of bargain hunting after previous session's sharp declines and hopes of more stimulus measures have led to some respite for markets in the region," said Mr Joel Ng, a Singapore-based analyst at KGI Securities.
Falling domestic virus cases in China, the region's biggest trading partner, and President Xi Jinping's visit to the epicentre of the epidemic further lifted sentiment in South-east Asia.
Indonesian shares, which have slumped over 18 per cent so far this year, rose 1.6 per cent on strength in financials.
The country's finance minister said the authorities would use measures including buying back government bonds to stabilise markets.
Other Asian bourses also did well. Japan's Nikkei ended the day up 0.85 per cent, after earlier touching its lowest level since April 2017. Australia's index closed up 3.1 per cent as some went hunting for bargains in beaten down stocks. China's benchmark Shanghai Composite Index traded 2.1 per cent higher.
European stocks, too, wasted little time in recouping 3 per cent of the 7 per cent they had slumped on Monday, one of their worst days on record. - REUTERS