SINGAPORE (Oct 31): Singapore shares rallied on the final day of October, tracking strong gains in other Asian markets, especially Japan, where the Nikkei put on 4.8% after the Bank of Japan surprised investors by expanding its already-huge monetary-stimulus programme to spur the world’s third-largest economy.
“The BOJ recognised that the fight against deflation was starting to fade and expanded its asset purchase programme,” Bank of Singapore chief economist Richard Jerram wrote in a note.
“The BOJ needs the stimulus from the weaker exchange rate to put the economy back on track,” he said.
For every stock in Singapore that fell, 3½ advanced.
Some 1.73 billion shares worth $1.49 billion changed hands, notably more than the 1.16 billion shares worth $912.3 million on Thursday.
The Straits Times Index climbed 1.2% to 3,274.25, its highest level since Sept 30.
Banks led gains among blue chips.
UOB rose 2.4% to $23, OCBC added 2.1% to $9.89 and DBS gained 0.8% to $18.48.
All three lenders reported 3Q2014 earnings that beat expectations.
Global Logistic Properties, which substantially expanded its portfolios in Japan and Brazil recently, rose 1.9% to $2.75.
Even OSIM International, a victim of heavy selling this week, regained some ground, ending 0.8% higher at $1.86.
The stock was punished over the past few days after the massage chair maker said its 3Q2014 earnings declined 28% y-o-y on slower sales and higher operating expenses related to its TWG Tea brand.