OCBC Investment Research
Date of Report: 30 April 2025
Global Markets Climb on Trade Optimism and Robust Corporate Earnings: In-Depth Analysis and REITs Spotlight
Market Overview: Trade Developments and Corporate Earnings Drive Momentum
Global markets ended on a positive note, propelled by renewed optimism around trade negotiations and stronger-than-expected corporate earnings. The United States led major indices higher, with investors encouraged by President Trump’s executive order to ease auto tariffs, which alleviated some fears around ongoing trade tensions. Meanwhile, key corporate results from giants such as Honeywell, General Motors, and Apple helped buoy sentiment.
– The Dow Jones Industrial Average surged by 300 points, or 0.75%, while the S&P 500 and Nasdaq Composite rose 0.58% and 0.55% respectively. – Ten-year US treasury yields dipped below 4.2%. – The US dollar strengthened against most major currencies, while gold and oil prices declined.
Tariff talks continue to dominate headlines with Treasury Secretary Scott Bessent emphasizing that the responsibility for progress lies with Beijing, and predicting no major supply chain disruptions from the disputes. Despite weaker consumer confidence and a 3.9% drop in job openings, the market remained optimistic, focusing on the potential for near-term trade agreements.
Regional Market Performance: Europe and Asia in Focus
Europe: Earnings and Tariffs Shape Sentiment
– The Stoxx Europe 600 Index gained 0.36%, supported by strength in banking and healthcare, while consumer products and retail lagged.
Asia: Mixed Sentiment Amid Earnings and Geopolitical Tensions
– The MSCI Asia Pacific Index rose as much as 0.7%, led by a rally in Chinese tech stocks and India’s Reliance Industries after robust earnings. – Japanese markets were closed for a holiday. – Subdued results from Super Micro Computer Inc highlighted a fragile outlook, while escalating India-Pakistan tensions and upcoming Chinese market holidays prompted risk reduction among investors.
Singapore Market Highlights
| Index |
Close |
Net Chg |
% Chg |
| Straits Times Index |
3,805.2 |
-6.6 |
-0.2% |
| FTSE ST Financials |
1,492.8 |
-1.7 |
-0.1% |
| FTSE ST REITs |
640.3 |
-0.4 |
-0.1% |
| FTSE ST Real Estate |
625.4 |
-0.8 |
-0.1% |
– Trading volume increased 10.1% to 968.6 million, while turnover jumped 19.2% to 1,317.2 million. – The 52-week range for the Straits Times Index stands between 3,198.4 and 4,005.2. – Market breadth was positive with 267 gainers versus 209 losers.
World Indices and Commodities Snapshot
| Index |
Close |
% Chg |
| S&P 500 |
5,560.8 |
+0.6% |
| DJI |
40,527.6 |
+0.7% |
| Nasdaq Comp |
17,461.3 |
+0.5% |
| FTSE 100 |
8,463.5 |
+0.5% |
| STOXX Europe 600 |
525.1 |
+0.4% |
| Nikkei 225 |
35,840.0 |
+0.4% |
| Hang Seng Index |
22,008.1 |
+0.2% |
| SHSE Comp Index |
3,286.7 |
-0.1% |
| SET |
1,171.1 |
+1.0% |
| KOSPI |
2,565.4 |
+0.6% |
| TWSE |
20,232.6 |
+1.0% |
| FX/Commodity |
Close |
% Chg |
| USDSGD |
1.3076 |
+0.1% |
| USDJPY |
142.33 |
-0.2% |
| WTI Crude (USD/bbl.) |
60.42 |
-2.6% |
| Brent (USD/bbl.) |
64.25 |
-2.4% |
| Gold (USD/oz.) |
3,317.4 |
-0.8% |
| Silver (USD/oz.) |
32.94 |
-0.7% |
Research Ideas: Detailed Company Analysis
CapitaLand Ascendas REIT (CLAR SP): Strong Rental Growth Offset by Occupancy Dip
- Portfolio rental reversions surged to +11.0% in 1Q25, outpacing 4Q24’s +8.6% and exceeding management’s mid-single digit guidance for FY25.
- Breakdown: Singapore (+7.0%), US (+10.3%), Australia (+59.0%). No renewal leases were signed in UK/Europe. In Singapore, industrial and data centres (+9.0%), business space and life sciences (+5.8%), logistics (+2.5%). US rental reversions: business space/life sciences (+0.7%), logistics (+11.5%).
- However, overall portfolio occupancy fell 1.3 ppt QoQ to 91.5%, with all regions contributing. Australia saw a sharp 3.3 ppt drop to 89.2% due to a Sydney logistics property’s occupancy falling from 100% to 0% (tenant discussions ongoing). Brisbane property saw a 34.4 ppt drop to 60.2% but partial re-leasing secured. Singapore and US portfolios fell by 0.9 ppt each, to 91.6% and 88.0% respectively. UK/Europe had a modest 0.4 ppt fall to 98.9%.
- Aggregate leverage ratio rose from 37.7% (Dec 2025) to 38.9%, attributed to the acquisition of a US logistics property in Indiana for USD115.8m (SGD150.3m), with an initial net property income yield of 7.6% pre-transaction costs.
- Weighted average all-in debt cost decreased by 10 bps QoQ to 3.6%. Debt hedging fell from 82.7% to 73.6%.
- FY25 and FY26 DPU forecasts increased by 0.5% and 0.6% respectively due to lower debt costs, partially offset by FX and occupancy assumptions. Cost of equity assumption raised to 6.8% (from 6.6%) due to market volatility, resulting in a reduced fair value estimate of SGD3.21 (from SGD3.30).
ESG Update:
- ESG rating upgraded (Sep 2023) on improved corporate governance, executive pay transparency, business
