Singapore’s equity benchmark scaled an all-time high for the 14th consecutive session on Monday, buoyed by strong inflows to high-yield stocks, while bourses elsewhere in emerging Asia also began the week on a largely positive note.
Most regional currencies slid against the US dollar: the Indonesian rupiah and the Philippine peso weakened about 0.4 percent each, while South Korea’s won, Taiwan’s dollar, and Thai baht slipped marginally.
An MSCI gauge of global emerging market currencies also declined, now down more than 1 percent since hitting an all-time high on July 3.
Singapore’s FTSE Straits Times Index climbed for an 11th consecutive session, its longest winning streak on record, and rose as much as 0.9 percent to 4,225.790 points. The benchmark index was driven by a rally in banks, telecoms, and industrial firms.
Analysts say the city-state’s equity market has emerged as a relative safe-haven asset amid rising global risks, with ample liquidity, a strong local currency, and low interest rates boosting appetite for attractive dividend yield.
“Low interest rates and a lack of alternative yield instruments are likely to continue supporting market activity (in Singapore),” DBS analysts said, adding that a recovery in wealth management will offer medium-term tailwind for Singapore banks.
Defensive stocks are gaining appeal among global investors who seek stability amid ongoing uncertainty over US trade policy and macroeconomic challenges.
Singapore’s economy also surprised to the upside last week, reporting faster-than-expected second-quarter growth and a 13 percent jump in exports for June, further reinforcing bullish sentiment.
Across the rest of Southeast Asia, equities held largely firm: Indonesia’s benchmark index jumped as much as 1 percent and continued to hover around its mid-December 2024 highs, while stocks in Manila and Seoul climbed 0.7 percent and 0.4 percent, respectively.
