Shares close 2.5% up

SINGAPORE - Singapore shares closed 2.5 per cent higher on Thursday, mirroring gains in regional markets as investors cheered Japan's plans for a new stimulus package, dealers said.

The main Straits Times Index rose 44.55 points to 1,828.51. Volume was 1.64 billion shares worth $1.17 billion (US$780 million) and there were 364 rising issues, 125 losers and 709 issues even.

Japan's plans for a fresh stimulus package worth over US$150 billion are seen as good news with Singapore likely to gain in terms of improved exports should the world's second biggest economy turn around, dealers said.

'If one believes in economic recovery, the Singapore market should be a good bet given it is among the cheapest in the region and has such an open economy,' a trader at a local brokerage said.

Among the banks, DBS added 41 cents to $8.91, Oversea-Chinese Banking Corp put on 16 cents to $5.46 and United Overseas Bank was 38 cents higher at $10.50.

Singapore Airlines climbed 48 cents to $11.46 and Singapore Telecommunications was three cents up at $2.55.