SINGAPORE - Stocks on the local bourse ended higher on May 2, a day before Singaporeans head to the polls.

The Straits Times Index (STI) gained 0.3 per cent or 12.63 points to 3,845.14.

On the STI, Jardine Matheson was the top gainer. It rose 3.9 per cent or US$1.74 to US$46.20. CapitaLand Investment came in at the bottom of the benchmark index, shedding 8 per cent or $0.22 to close at $2.53.

The trio of local banks settled higher. UOB was up 0.8 per cent or $0.26 at $34.90; DBS added 0.6 per cent or $0.25 to $42.70; OCBC increased 0.1 per cent or $0.02 to $16.17.

Across the broader market, gainers outnumbered losers 337 to 189, after 1.2 billion securities worth $1.3 billion changed hands.

Elsewhere in the region, stock indices largely tracked Wall Street’s gains on May 1, after China signalled it was considering a US proposal to negotiate steep tariffs.

Hong Kong’s Hang Seng Index rose 1.7 per cent, Japan’s Nikkei 225 gained 1 per cent and the Kospi added 0.1 per cent. Meanwhile, the Bursa Malaysia Kuala Lumpur Composite Index climbed 0.2 per cent.

Ms Ipek Ozkardeskaya, senior analyst at Swissquote Bank, noted that the lack of trade war escalation and dovish expectations from the Federal Reserve have been key drivers behind the recent S&P500 rally.

“But optimism remains fragile, and the Fed’s ability to help depends on the trajectory of inflation,” she added.

While Meta, Microsoft, Amazon and Apple posted stronger-than-expected Q1 results, she sees cautious statements from Apple and Amazon tempering overall market sentiment.

Mr Barnabas Gan, RHB Group chief economist, noted a continued improvement in risk-taking appetite. “At this juncture, investors are fixated on potential evolvement of US-led tariffs in their respective asset allocation strategies.”

However, he added that the absence of conclusive US-China trade talks could dampen hopes for a deal in the near future.

THE BUSINESS TIMES

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