STI gains on news of China's economic stimulus

AFTER unexpected misses in Chinese trade data scared investors into retreat on Monday, the Chinese government swept cheer back into markets on Tuesday with indications that it will inject stimulus into its economy to counter growth pressures.

The National Development and Reform Commission said that it aims to achieve "a good start" in the first quarter, and senior economic policy officials announced tax cuts, especially for small businesses and the manufacturing sector.

Zhu Hexin, deputy governor of the People's Bank of China, told reporters that China will avoid a "flood" of liquidity and instead maintain a stable macro-leverage ratio.