Singapore Stocks Hit Record High Amid Fading Rate Hike Bets

Emerging Asia stocks rallied on Friday as waning expectations of a near-term US rate hike boosted demand for risk assets. Singapore's benchmark index hit an all-time high, driven by gains in blue-chip banks.

The MSCI gauge of emerging Asia equities rose 1.6% and was headed for its best session in seven days. Tech-heavy South Korea and Taiwan gained 1.8% and 1.5%, respectively.

DBS economist Radhika Rao attributed the improvement to moderating expectations of a Federal Reserve rate hike ahead of key US inflation data. The yen's appreciation has weakened the dollar, supporting Asian currencies' recovery from recent losses.