Singapore stocks in broad-based rally, with China’s pledge for increased RMB flexibility signalling confidence in global economic recovery, stronger Chinese purchasing power, according to Dow Jones.

STI +1.2% at 2,868.37, with initial resistance at 2,890, based on 61.8% retracement of fall to year-to-date low of 2,648 from 52-week high of 3037.

Market breadth at 8 gainers for every loser; commodity stocks among best performers; FTSE ST Basic Materials Index +2.5%. China plays also faring well with FTSE ST China Index +2.2%.

“There’s some positive reaction to the news but it’s knee-jerk because it’s not going to be a one-off (strong) revaluation but progressive. People will be watching how far they are going to extend the appreciation,” says analyst at local brokerage.

Notable gainers include Noble Group (N21.SG), +2.7% at $1.89, Wilmar (F34.SG), +2.1% at $5.95, Straits Asia Resources (AJ1.SG), +2.5% at $2.06, Yanlord Land (Z25.SG), +4.1% at $1.79, Ying Li International (5DM.SG), +3.6% at $0.435.