In Singapore The Straits Times Index recovered from late-morning lows to end the session with a net 12.39-point gain to 2,979.38 – its highest close in three months. This came on the heels of a one per cent rise by the Dow and a 1.2 per cent gain on Nasdaq overnight.

Sentiment here was also boosted somewhat by overnight data from the US showing new home sales rising an impressive 24 per cent in June from May. There is also optimism that US durable goods orders – the numbers are due out on Wednesday – have also gained.

Situational stocks hogged the limelight yesterday, led by Singapore Airlines which rose 26 cents to $15.02 after it reported better-than-expected first-quarter earnings of $252.5 million. Most houses have ‘buy’ or ‘outperform’ calls on the stock, with 12-month targets ranging from Daiwa’s $15.20 to Macquarie’s $19.30. More