“We believe global rate cuts and a weaker US dollar will boost liquidity [and] asset valuations in Asian markets,” say Vu and Batra. “Singapore has been among the countries that have seen strong capital inflows so far in 2025, which has led to the Singapore dollar firming up and interest rates declining sharply.”
Ongoing initiatives to improve the liquidity and visibility of Singapore’s equities have buoyed JP Morgan’s (JPM) 12-month bull target on the Straits Times Index (STI) to 6,000 points, up from 5,000 points previously.
The anticipated reforms “hold out the promise of narrowing Singapore’s market valuation gap with its regional counterparts”, say JPM analysts Khoi Vu and Rajiv Batra, who had just raised their end-2025 STI bull target to 5,000 points from 4,500 points in July.
