Singapore shares ended 1.5 percent up at a one-month closing high on Monday, led by gains in tech firms such as Chartered Semiconductor and the blue chip stock Singapore Airlines
Investor sentiment was boosted by a drop in oil prices and firmness in overseas markets.
The key Straits Times index finished up 1.47 percent, or 26.30 points, at 1,818.0, its highest close since May 7.
"We have probably seen the worst news and the market has digested the fear of escalating oil prices," said John Yap, director at UOB Kay Hian, adding that the market could a see consolidation above the 1,800 level for the next few days.
In the broader market, gainers thumped losers 264 to 67 overall as volumes rose to 443 million shares from 291 million on Friday.
Shares of Chartered Semiconductor Manufacturing Ltd surged 4.4 percent to S$1.42 on expectations the contract chipmaker would upgrade its second-quarter guidance after the New York market closes on Monday, analysts said.
In April, the Singapore-based, state-controlled Chartered had forecast between a nine and 12 percent rise in June quarter revenues to US $249-$255 million from the first quarter, due to robust demand for broadband gear and mobile phones.
The company said it expected net profit to edge up to $2-$12 million, compared with the March quarter's $1.9 million profit, which includes one-time gains and charges.
Singapore Airlines, for which oil makes up for a fifth of costs, rose one percent to S$10.30 as NYMEX crude oil futures finished lower on Friday, below $40 a barrel for the third consecutive day.
Banks, considered proxies of the economy and which account for close to 40 percent of the index's weighting also added to the mild market rally in the afternoon.
DBS Group Holdings climbed 2.08 percent to S$14.70 and United Overseas Bank rose 1.53 percent to S$13.30. OCBC also edged higher 0.83 percent to S$12.20. "We do not expect anymore unforeseen bad news to hit the market, unless there is another al Qaeda attack," said Yap.
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