Singapore stocks likely to gain with China’s call for greater yuan flexibility fuelling hopes for stronger Chinese purchasing power, according to Dow Jones.

“My sense is that commodity and forex-sensitive industries will benefit,” says UOB KayHian Singapore research head Andrew Chow, “commodity plays will be tracking this news closely, particularly those that will benefit from increased China consumption.”

Chow says exporters to China, such as HTL International (H64.SG), plus Chinese consumer goods makers like China Hongxing Sports (BR9.SG), China Sports (FQ8.SG) may also gain.

STI closed down 0.4% at 2,833.40 Friday; resistance eyed at 2,890, based on 61.8% retracement of fall to year-to-date low of 2,648 from 52-week high of 3037