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Singapore’s Stellar Stock Rally Stalls as Virus Cases Jump

  • Benchmark STI retreats this month as local infections rise
  • Gauge has dropped 3% on average in May over the last 10 years

Photographer: Roslan Rahman/AFP/Getty Images

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A rally in one of Asia’s best-performing stock markets is stalling amid rising virus cases at home and a rethink of the global reflation trade.

Second only to Taiwan among Asia’s major benchmarks this year, Singapore’s Straits Times Index has slipped 1% so far in May, paring 2021’s gains to about 12%. The reintroduction of social distancing rules following the emergence of new clusters has weighed on investor sentiment, despite the country having one of the highest vaccine coverage in Asia.