SINGAPORE - Equities in Singapore joined rallies in Asian markets on Aug 30 after positive US economic data was released on the night of Aug 29.

The benchmark Straits Times Index (STI) climbed 1.1 per cent, or 38.46 points, to 3,442.93.

Across the broader market, 1.4 billion shares worth $2 billion changed hands, with 354 gainers beating 222 losers.

On Aug 29, after Asian markets closed, data was released showing initial claims for state unemployment benefits in the United States fell by 2,000 to 231,000 for the week ended Aug 24.

Regional indexes ended higher on Aug 30. Japan’s Nikkei 225 gained 0.7 per cent, Hong Kong’s Hang Seng Index rose 1.1 per cent and South Korea’s Kospi Composite Index added 0.5 per cent. The Bursa Malaysia Kuala Lumpur Composite Index rose 1.5 per cent.

On the STI, Sembcorp Industries rose 4.4 per cent or 21 cents to $4.93. Conversely, DFI Retail Group lost ground, retreating 1.1 per cent or 2 US cents to US$1.86.

The trio of local banks all rose. UOB added 1.1 per cent or 34 cents to $31.39, DBS Bank increased 1.5 per cent or 55 cents to $36.36 and OCBC Bank grew 0.8 per cent or 12 cents to $14.55.

In a note on Aug 30, RHB head of equity research Shekhar Jaiswal said investors in the Singapore market should start looking for yields among companies that offer sustainability or growth in earnings or dividends.

Singapore banks have delivered year-to-date strong share price returns, and “we now view them more as yield rather than growth stocks”, he said.

He added that investors could “position more aggressively in real estate investment trusts” as interest rate cuts are “around the corner”. RHB Economics expects two rate cuts in 2024. THE BUSINESS TIMES