Singapore shares closed 0.61 percent higher as the U.S. Federal Reserve repeated its message that it is in no hurry to raise interest rates.
As widely expected, the Federal Reserve cut its monthly asset purchases to 25 billion U.S. dollars from 35 billion dollars, leaving it on course to end the program this autumn.
While the Federal Reserve also reiterated its concerns over slack in the labor market, it upgraded its assessment of the U.S. economy and expressed some comfort that inflation was moving up toward its target.
Meanwhile, the U.S. second-quarter gross domestic product expanded at a 4.0 percent annual rate as activity picked up broadly, while reading for the first quarter was revised up to a contraction of 2.1 percent from an earlier estimate of a 2.9 percent drop.
The benchmark Straits Times Index rose 20.41 points to close at 3,374.06 points. Trading volume was 1.72 billion shares worth 1.66 billion Singapore dollars. Decliners outnumbered advancers 256 to 193, while 495 stocks closed unchanged
Phillip Securities Research said market bias is to the upside especially if U.S. markets do not go through a major correction. Local stock prices should have further upside as long as the market support at 3,230 points holds.
SMRT Corporation rose 1 percent to 1.58 Singapore dollars. It reported first-quarter revenue increased 4.3 percent on-year to 297.1 million Singapore dollars, out-paced by 36.8 percent on-year growth in net profit to 22.4 million Singapore dollars.
Tee International closed flat at 27 Singapore cents. It announced that it had signed a contract with the Bangkok Metropolitan Administration. This is to operate and maintain Bangkok's first underground wastewater treatment plant. The plant is located beneath the Education and Environmental Centre in Bangsue Bangkok. It will serve an area of 21 square kilometers with a collection system of about 50 kilometers. Its maximum capacity is 300 million liters of municipal wastewater a day.
Among the top gainers, Jardine Matheson rose 0.7 percent to 59. 97 U.S. dollars, whereas Singapore Airlines became one of the top losers by falling 2.5 percent to 10.33 Singapore dollars. (1 U.S. dollar equals to 1.24 Singapore dollars)