Singapore stocks manage to build on early gains, drawing strength from advance across Asian markets, says Dow Jones.

STI +0.7% at 3,043.53 midday vs 3,035.52 opening (+0.4%), tad off new year-to-date high of 3,048.53 set in early trade.

Resistance at lower end of 3,085-3,146 breakdown gap formed in June 2008. Market breadth at 1.5 gainers for every decliner.

“Sentiment has turned positive over the past few weeks as there has been (more) evidence that the US will likely avert another downturn,” says DMG research head Terence Wong; “however, volume has remained very light lately, probably an indication that investors are still sidelined and waiting to see if the turnaround is concrete.”

Overall volume at 830 million shares worth $816.7 million, with good mix of small, mid, large caps among most active. Among STI components, Olam (O32.SG) +5.0% at $2.93 as spike in China’s August consumer prices fuels hopes company will gain from higher food prices.