The Singapore equity market concluded a four-day losing streak on Friday, recovering nearly 110 points or 3.4 percent. With the Straits Times Index hovering just below the 5,700-point threshold, further gains are anticipated when the market reopens on Monday.
Asian markets are expected to open on a positive note, driven by declining crude oil prices and anticipated bargain hunting. This bullish outlook follows gains in European and U.S. markets, suggesting a similar trajectory for Asian bourses.
The STI edged higher on Friday, as advances in the financial and retail sectors were offset by declines in energy and manufacturing companies.
At the close, the index rose 6.18 points, or 0.11 percent, to settle at 5,695.93, within a trading range of 5,669.22 to 5,710.95.
Wall Street provided a firm foundation, with major indices opening higher and maintaining solid gains throughout the trading session.
The Dow surged 509.19 points, or 0.98 percent, to close at 52,573.29, while the NASDAQ climbed 251.31 points, or 0.96 percent, to finish at 26,333.04. The S&P 500 also advanced, gaining 65.28 points, or 0.86 percent, to end at 7,656.98.
Despite the daily recovery, the major indices still posted weekly losses during the holiday-shortened week. The Dow fell 1.6 percent, while the S&P 500 and NASDAQ declined by 0.8 percent and 0.7 percent, respectively.
Wall Street’s rebound was fueled by a sharp pullback in crude oil prices, which had surged significantly in preceding days, alongside bargain-hunting activity.
Crude oil prices fell on Friday amid optimism surrounding a potential reopening of the Strait of Hormuz. This followed reports of a possible meeting between Iran and Gulf Cooperation Council members to de-escalate the regional crisis. West Texas Intermediate Crude for October delivery dropped $2.63, or 2.57 percent, to $99.85 per barrel.
Market participants largely overlooked the Labor Department’s August consumer price inflation report, which aligned with forecasts. The data reinforced expectations of a quarter-point interest rate hike by the Federal Reserve this week, a move that is largely already reflected in current market pricing.