Stock Market in Singapore set for upward movement on Tuesday opening
Positive Asian Market Outlook Boosts Singapore Stock Market
Asian markets are experiencing a surge of optimism, driven by several key factors that have created a favourable environment for risk assets, particularly in emerging markets like Singapore.
The global forecast for Asian markets, as of mid-August 2025, is positive due to expectations of the US Federal Reserve resuming rate cuts starting September, ongoing policy stimulus in China supporting economic growth, and positive momentum in sectors such as AI and technology. These elements combined to create a favourable environment for risk assets, particularly emerging markets in Asia, which benefit from lower interest rates, improving corporate earnings expectations, and targeted growth-supportive policies.
China's targeted GDP growth of 5% in 2025, robust exports, accommodative monetary and fiscal policies, and stabilizing US-China trade tensions contribute to the optimism. The Fed's expected rate cuts serve as a significant tailwind for emerging market equities by easing global financial conditions and allowing Asian central banks to reduce rates to stimulate growth further. Additionally, improved investor sentiment due to political stability in Japan, a trade deal with the US, and an economic backdrop supporting reflation also helped enhance the region's outlook.
This positive global forecast has translated into an uplift for the Singapore stock market. Singapore benefits from strong foreign direct investments and healthy investment flows supporting economic growth near its potential. Singapore’s robust position amid regional growth and investment trends helps maintain investor confidence in its equities.
On Monday, the Singapore stock market halted a six-day losing streak, with the Straits Times Index (STI) climbing 43.40 points or 1.04 percent to finish at 4,197.23. The major averages on Wall Street opened solidly higher and closed in similar fashion on Monday, cutting into Friday's steep losses.
Some of the notable gains in Singapore included crude oil stocks, with Singapore Technologies Engineering increasing 1.50 percent, and oil giant Keppel Ltd perking 0.48 percent. In the property sector, Mapletree Pan Asia Commercial Trust skyrocketed 3.13 percent, while Mapletree Logistics Trust and Frasers Logistics & Commercial Trust both strengthened 1.74 percent.
Financial stocks also performed well, with UOL Group expanding 1.16 percent, United Overseas Bank collecting 0.83 percent, and Oversea-Chinese Banking Corporation improving 0.66 percent. Notable gains were also seen in industrial stocks, with SembCorp Industries surging 2.76 percent and Seatrium Limited gaining 1.30 percent.
In the tech sector, SingTel soared 2.56 percent, while CapitaLand Ascendas REIT, CapitaLand Integrated Commercial Trust, and CapitaLand Investment gained 2.19 percent, 2.28 percent, and 1.45 percent, respectively.
The STI's positive performance comes as Singapore prepares to release June figures for retail sales later today. Weaker than expected jobs data has contributed to buying interest, with the chances of a quarter point rate cut in September by the Federal Reserve increasing to 91.9%.
However, the economic impact of President Donald Trump's new tariffs has caused a steep drop in the market. Companies such as City Developments, DBS Group, DFI Retail Group, and Genting Singapore saw significant gains, rallying 2.12 percent, 0.61 percent, 0.29 percent, and 2.04 percent, respectively.
In the global market, the Dow Jones Industrial Average jumped 585.06 points or 1.34 percent, the NASDAQ rallied 403.45 points or 1.95 percent, and the S&P 500 gained 91.93 points or 1.47 percent.
Amidst these market fluctuations, it is clear that the positive global forecast for Asian markets is creating a ripple effect in the Singapore stock market, boosting confidence and investment flows into Asian equities, and translating to positive performance in regional markets including Singapore.
References: [1] CNBC, 2025. Asian markets set to open higher on Monday [2] Bloomberg, 2025. Singapore Stock Market Rises as Foreign Direct Investment Boosts Confidence [3] Reuters, 2025. Asian stocks set for gains as Fed rate cut expectations, China growth boost sentiment [4] Financial Times, 2025. Asia's tech sector leads regional market rebound
The positive global forecast for Asian markets, fueled by factors such as expected US Federal Reserve rate cuts, China's GDP growth, and improved investor sentiment, is creating a ripple effect in the Singapore stock market, boosting confidence and investment flows into Asian equities, as evident in the STI's positive performance. This encouraging environment, particularly in sectors like technology, has resulted in notable gains in companies such as SingTel and several others in the finance, industrials, and tech sectors.
Investors are also keeping a close eye on Singapore's retail sales figures for June and potential rate cuts by the Federal Reserve, as these factors could further influence investment decisions in Asian markets. The overall sentiment indicates that technology, finance, and other sectors in Asian markets, including Singapore, are likely to witness continued growth and attract investments in the coming days.
