The Singapore stock market has finished lower in two of three trading days since the end of the seven-day winning streak in which it had spiked more than 120 points or 4.3 percent. The Straits Times Index finished just above the 2,900-point plateau, although now analysts are forecasting a positive bounce at the opening of trade on Thursday.
The global forecast for the Asian markets is fairly upbeat, following better than expected employment and manufacturing data out of the United States. Technology stocks figure to lead the rally, along with steel companies and brokerages. The European and U.S. markets finished firmly in the green, and the Asian bourses are expected to open in similar fashion.
The STI finished barely lower on Wednesday, nudged into the red by softness from the financial shares and technology stocks.
For the day, the index eased 1.93 points or 0.07 percent to finish at 2,904.76 after trading between 2,883.49 and 2,905.97.
Among the actives, CDL Hospitality Trusts shed 2.8 percent, while Neptune Orient Lines jumped 5.0 percent, STATS ChipPac lost 2.9 percent, Creative Technology fell 2.9 percent and SIA Engineering climbed 2.0 percent.
The lead from Wall Street is positive as stocks turned in a strong performance on Wednesday following the latest batch of economic data. The upward move on the day came after the markets experienced choppy trading in the previous session.
The strength was partly due to the release of a report from payroll processor ADP showing a continued increase in private sector employment in the month of January. ADP said employment in the non-farm private business sector rose by 170,000 jobs in January following a revised increase of 292,000 jobs in December.
Also, the Institute for Supply Management reported a continued expansion in manufacturing activity in January, with the index reaching a seven-month high. The ISM's purchasing managers index rose to 54.1 in January from a revised 53.1 in December, with a reading above 50 indicating growth in the manufacturing sector. That followed separate reports showing expansions in manufacturing activity in both Germany and China.
Additionally, the Commerce Department released a report showing a much bigger than expected increase in U.S. construction spending in December.
Positive sentiment was also generated by reports that social networking site Facebook may soon file paperwork for a $5 billion initial public offering. Morgan Stanley (MS), which was reportedly selected as the lead underwriter for the offering, rose by 4 percent on the day.
Shares of Whirlpool (WHR) also moved sharply higher after the appliance maker forecast 2012 earnings above analyst estimates. Whirlpool jumped by 13.5 percent to a five-month closing high.
On the other hand, online retailer Amazon.com (AMZN) came under pressure after reporting weaker than expected fourth quarter sales and providing disappointing guidance.
The major averages ended the session off their best levels of the day but still closed firmly in positive territory. The Dow rose 83.55 points or 0.7 percent to 12,716.46, the NASDAQ jumped 34.43 points or 1.2 percent to 2,848.27 and the S&P 500 advanced 11.67 points or 0.9 percent to 1,324.08. The strong gain on the day extended a recent upward move by the tech-heavy NASDAQ, which reached its best closing level in over six months.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.