STI rebounds as risk appetite returns

NASTY, brutish, but mercifully short - the hammering local stocks suffered last week after the Chinese New Year break has been nearly erased by a substantial rebound on Monday as signs of refreshed risk appetite returned to the market.

As arguments that equities have been oversold gained force, the local market clawed its way up over the course of the day to finish the session 2.7 per cent higher, with the Straits Times Index (STI) rising 67.95 points to 2,607.9.

And even though Shanghai dipped upon reopening after the New Year holiday, it was in the minority in the region. Other major Asian markets gained ground, led notably by Tokyo which saw the Nikkei jumping 7.2 per cent. Hong Kong was also up 3.3 per cent.