Rallies in Japan, Dow futures boost STI

A 7.7 per cent jump in Japan's Nikkei Average after announcement of a cut in corporate tax, a 4 per cent jump in Hong Kong's Hang Seng Index and a 180-point rise in the Dow futures on Wednesday helped the Straits Times Index (STI) extend its rebound into a second consecutive day, this time adding 42.86 points or 1.5 per cent to finish at 2,928.18.

Volume was 1.3 billion units worth S$1.2 billion and excluding warrants, there were 308 rises versus 114 falls. The rise brings the STI's two-day recovery to a total of 76 points or 2.7 per cent.

Apart from Japanese stocks turning in their best one-day performance since 2008, two announcements added to either the urge to buy or to cover one's short positions.