Singapore Stocks-Rise at midday but SIA underperforms

* Index up 0.6 pct, helped by gains in OCBC, Genting

* Singapore Airlines fall after poor Q3 earnings

By Charmian Kok

SINGAPORE, Feb 3 (Reuters) - Singapore shares rose by midday Friday, outperforming other Asian bourses, as gains in blue chips such as Oversea-Chinese Banking Corp Ltd and casino operator Genting Singapore PLC helped to lift the benchmark index.

Traders said the Straits Times Index (STI) was playing catch up with other Asian equities as it fell slightly in the previous session despite strong gains in other regional bourses.

However, the world's second largest carrier Singapore Airlines Ltd, retreated as much as 2.7 percent, after it posted disappointing quarterly earnings and warned of further deterioration in its business.

By 0500 GMT, the MSCI Asia ex-Japan was 0.4 percent lower, while the STI was up 0.6 percent, or 18.28 points, at 2,919.32.

Around 1.96 billion shares worth S$883.6 million were traded, compared with 1.58 billion shares worth S$913 million that changed hands by the same time on Thursday.

Improving economic data from the U.S., and growing expectations that the world's second-largest economy China is set to ease its monetary policy this year, have helped to support equities, said Andrew Chow, an analyst at UOB Kay Hian.

"Risk appetite is tracking up again, as fears of a bad tail-risk event happening in Europe is receding," he said.

Singapore shares are also benefitting from expectations that the city-state's currency is likely to appreciate further, drawing more fund inflows to the country, Chow added.

By midday, OCBC shares were 1.9 percent higher at S$8.66 with over 3.8 million shares. Goldman Sachs said it expects the bank to see sequential profit growth, helped by better revenues.

"The stock is well off its highs and has underperformed local peers in the recent rally," said the brokerage in a report.

Genting also jumped 1.9 percent, spurred by expectations it could report strong quarterly earnings, analysts said. Genting will also benefit from an increase in hotel rooms at its Singapore casino-resort this year.

Chinese property developer Ying Li International Real Estate Ltd surged as much as 12 percent to a six-month high after stockbroker DBS Vickers issued a bullish report on the firm.

The completion of two of Ying Li's projects in Chongqing, China, is expected to boost property sales and rental income significantly over the next two years, DBS said. (Reporting by Charmian Kok; Editing by Kevin Lim)