Gains could be limited though because of Apple results.
OCBC Investment Research said:
Continued strength on Wall Street overnight should see the local bourse get off to a positive start this morning.
However, the weaker-than-expected earnings from Apple could limit gains, especially since US index futures are already lower in early trade (Nasdaq down 1.7%).
The STI has cracked the 3230 resistance yesterday, but just barely, suggesting that the market remains somewhat cautious.
Furthermore, we note that penny stocks and situational plays continue to remain in focus, which may also be another signal that there is some “froth” in the market.
As such, failure of the index to sustain above 3230 could spark profit-taking back to 3200 or even 3150.
On the upside, 3250 is the next hurdle, ahead of 3280.
IG Markets Singapore meanwhile noted:
Much of today’s play in Asian markets will centre on China’s flash PMI data and Japan’s trade deficit numbers.
Yesterday the local blue chip index continued its slow and steady rise as it gained 0.4% to leave it at 3231 last night. This morning, the futures markets now points to a lower open for the STI, as the effect of the disappointing Apple earnings is to have reversed the earlier positive leads.
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