Singapore equities gained for a second straight day on Friday, in line with a rally in global stocks after Fed chair Janet Yellen signalled gradual monetary tightening.
The U.S. economy is healthy enough for the Fed to raise rates and begin winding down its massive bond portfolio, although low inflation and a low neutral rate may leave the central bank with diminished leeway, Yellen said on Wednesday.
Asian shares rallied for a fifth session, with MSCI's broadest index of Asia-Pacific shares outside Japan advanced 0.2 percent to its highest level in two years.
At 0633 GMT, the Straits Times Index gained 0.76 percent or 25 points to 3,260. It ended 0.83 percent lower on Thursday, taking the year-to-date gains to 12 percent.
Lenders topped the gainers list: United Overseas Bank added 0.5 percent, DBS Group rose 0.3 percent while Oversea-Chinese Banking Corp was up 0.6 percent.
Commodity trader Noble Group rose for a fourth session, gaining nearly 3 percent after Goldilocks Investment Company raised its stake in the firm.
Shares of United Engineers slipped 2.2 percent, Yanlord Land Group was down 2 percent while Perennial Real Estate Holdings gained 1.7 percent following deal announcement.
About 1.7 billion shares worth S$755 million changed hands, with gainers outnumbering losers 257 to 155.
