Singapore's main index extended its gains for a second
straight day, as stronger-than-expected Chinese trade data
buoyed investor confidence.
The benchmark Straits Times Index was up 0.3
percent at 3,230.86 while the MSCI's broadest index of
Asia-Pacific shares outside Japan rose 0.7
CapitaLand Ltd, which develops properties in
Singapore and China, climbed 2.1 percent to S$3.94, more than a
two-year high, on optimism that property demand will remain
strong in its key markets despite government efforts to curb
rising home prices.
DBS Vickers said the current liquidity-driven rally was
likely triggered by funds flow from the bond market into stocks
as risk aversion subsided.
So far this year, the average daily value of shares traded
was S$1.6 billion, 25 percent higher than 2012's daily average,
which could benefit Singapore Exchange Ltd, DBS noted.
"While it's still early days into the New Year, the
liquidity inflow may continue as the China recovery story
continues to pan out in the first half," the brokerage said.
China's exports grew 14.1 percent in December from a year
ago to hit a seven-month peak, exceeding market expectations for
a 4 percent rise, imports grew 6 percent on the year, double the
forecast. This boosted the country's trade surplus to $31.6
billion in December, from a surplus of $19.6 billion in
November, and sharply above a forecast of $19.7 billion.
1150 (0350 GMT)