BENGALURU: The Singapore dollar gained on Thursday after strong industrial production data boosted growth prospects, while most Asian stock markets edged higher, buoyed by enthusiasm at China’s aggressive stimulus package to boost the region’s largest economy.

The Singapore dollar strengthened 0.2% against the greenback. The currency has been hovering near a seven-year high touched earlier in the week. Local stocks, on the other hand, traded flat.

Data showed that industrial production in the city-state jumped 21% year-on-year in August, compared with the 9% increase estimated in a Reuters poll, lifted by a higher biomedicals and electronics output.

Analysts at Barclays estimate Singapore’s gross domestic product growth is on track to rise to 4.2% year-on-year in the third quarter, compared with 2.9% in the second quarter, with the rebound in manufacturing being the swing factor.

They also expect the Monetary Authority of Singapore to leave its forex policy settings unchanged through 2025, with the policy statement sounding less hawkish but not dovish.

Among other Southeast Asian assets, Manila stocks gained 1.3%, while equities in Taipei were up 0.4%.

The Indonesian rupiah and the Philippine peso weakened 0.5% and 0.1%, respectively.

On Wednesday, the People’s Bank of China cut medium-term lending rates to banks, a day after Beijing unveiled wide-ranging policy easing measures including steps to boost the stock market and support for the ailing property sector.

Also aiding sentiment, Bloomberg News reported earlier in the day that China was considering plans to inject capital of up to 1 trillion yuan ($142.46 billion) into its biggest state banks to beef up capacity to support the struggling economy.