STI +0.3%; China 'Hard Landing' Fears Eased - RBC

The STI is up 0.3% at 3086.77 after China's economic data lift sentiment over the country's growth, helping lift markets in Hong Kong and Shanghai. Market volume is 869 million shares worth S$639 million with 1.8 risers per faller. RBC Capital Markets says China's 2Q GDP showed a small pick-up in on-quarter growth and only a modest deceleration in on-year growth, reflecting strong monthly data for June, "underpinning our view that growth is moderating at a gradual pace and that concerns about a 'hard landing' are overdone." DBS Vickers says for the STI, "a downside gap yesterday puts immediate resistance at 3100-3115 that needs to be overcome." The house says it remains of the view that the 3070 level should hold, "otherwise, it's more 'sideways work' in this earnings season if 3070 gets stressed again. Below that, the next support point is at 3030." Large caps that were sold off heavily yesterday are rebounding, led by CapitaLand