Singapore stocks rally to five-month high amidst hopes for a Biden win

Analysts bet more fiscal spending under Biden, which they hope will spur growth.

The Straits Times Index closed up 2.2%, its biggest rise in five months, as investors reposition their portfolio in anticipation for a Biden win at the US presidential elections, reports Bloomberg.

It also climbed the most amongst all major indexes in Asia Pacific.

All 30 stocks were in the green, with industrials, property and banking shares amongst the top gainers as investors bought into the gauge dominated by old-economy sectors.

“All polls are predicting a Biden win so this is investors positioning themselves” in beaten-down shares, said Joel Ng, analyst at KGI Securities (Singapore).

Expectations of a new president in the White House have swept across global markets, with money managers betting more fiscal spending by a Biden-led administration will spur growth and spark a rally in value and cyclical shares.

Here’s more from Bloomberg