Singapore Stocks Hit Record High as Growth Forecast Rises

The FTSE Straits Times Index reached a record high of 5,774.21 on Tuesday, driven by a significant growth forecast upgrade from the Singapore Ministry of Trade and Industry. The ministry raised its 2026 growth projection to 4.5%-5.5%, up from 2.0%-4.0%, citing a global artificial intelligence investment boom and a milder impact from the Iran war. This follows a second-quarter GDP expansion of 5.9%.

Following the government's update, JPMorgan Chase & Co. raised its target for Singapore stocks, projecting the index could reach 7,000 over the next 12 months in a bull case scenario. This target represents a 22% upside from Tuesday's close. Analysts at the firm attributed the outlook to a "goldilocks economic backdrop," strong yields, and a narrowing valuation gap with developed-market peers.

While Singapore equities have gained more than 23% in 2026, outperforming Hong Kong, other Southeast Asian currencies have faced pressure. Rising oil prices and diminishing hopes for a peace deal between the United States and Iran contributed to the decline of the Indonesian rupiah, which fell 0.4% amid concerns over fiscal policy and central bank independence.