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STOCK market bulls returned to the market in droves yesterday and saw nothing but clear blue skies ahead of them.
They were quietly confident that there would be a rally this week on the back of strong suggestions from the world's central bankers, gathered in the United States over the weekend, that the world was pulling out of its worst recession in decades.
Even more important were indications that central banks were in no hurry to start raising interest rates, despite the better economic data and the huge rally experienced in global stock markets over the past few months.
This lent comfort to traders who had made huge bets on Asian stock markets. They now feel that they no longer have to fear a nasty gatecrasher, such as a US interest rate hike, spoiling their ebullient mood.
Also helping to underpin markets was a strong showing on Wall Street last Friday, with the Dow Jones Industrial Average hitting its highest level in 10 months following higher-than-expected US home sales last month.
What underpinned a strong regional market performance yesterday was the stabilisation of the volatile Shanghai market, which rose 1.1 per cent after falling by up to 8.6 per cent last week.
In Singapore, the benchmark Straits Times Index jumped 67.47 points, or 2.65 per cent, to 2,612.33, as investors stomped back into the market.
Elsewhere, Hong Kong's Hang Seng Index was up 1.67 per cent, Seoul's Kospi Index rose 1.98 per cent and Tokyo's Nikkei 225 jumped 3.35 per cent.
Topping the gainers in Singapore were the three local lenders. United Overseas Bank rose 54 cents to $16.80, OCBC Bank gained 25 cents at $8, and DBS Group Holdings was ahead 26 cents at $12.96.
Property counters got a shot in the arm from the Government's decision to keep the current tax framework on property sales gains.
In doing so, investors also dismissed fears that the Hungry Ghost Festival month might hamper home sales. This is a period in the Chinese calendar, lasting till Sept 18, when it is considered inauspicious for investors to make big investments like properties.
City Developments jumped 36 cents to $10.30, CapitaLand increased 11 cents to $3.75, while Fraser and Neave was up four cents at $3.94.
Resources-related shares also got a lift, as crude oil gained 21 US cents to US$74.10 a barrel - its highest level in 11 months.
Rig-builder Keppel Corp rose 25 cents to $7.73, while Sembcorp Marine gained seven cents at $3.15.
In the plantations sector, Wilmar International surged 33 cents to $6.41, and Golden Agri-Resources was up two cents at 50 cents.
The advice from market strategists to investors is to 'buy into any weakness'.
In a note on South Korea, Citigroup said exporters and banks would continue to benefit from foreign buying.
Like other regional currencies, the Korean won had appreciated, as foreigners poured huge amounts of money into the Korean equities markets, and Citigroup said it was expecting the buying interest to continue.
Also, Korean banks are continuing to grow their loan books, underpinned by a huge surge in home mortgages.
On top of this, there are ample customer deposit funds waiting on the sidelines for the right moment to re-enter the equities market.
To many market watchers, the observations made on the South Korean market by Citigroup could well apply to Singapore, Hong Kong or Taiwan.
A sober reminder that - despite the many differences which the various Asian economies may have - their markets march in time to the same beat.
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