Singapore could be the biggest comeback story for Asian equities this year.
After becoming the region’s worst performer in 2020 following a 12% slump, the Straits Times Index has surged 9.1% to trounce all other major Asian benchmarks so far this year. That’s come in the wake of a tech rout that saw the Nasdaq 100 enter a correction amid rising US Treasury yields.
Singapore’s market revival echoes the global trend of value investing as investors bet on an economic rebound. The island nation’s market is dominated by old economy shares, with more than 80% of the index made up of cyclical stocks sans technology and communication services -- among the highest contributions in Asia.