J.P. Morgan raises the target for the Singapore Straits Times Index to 6,500 points.

JPMorgan has raised the target for the Straits Times Index in Singapore to 6,500 points, stating that the "just right" economic conditions will drive profit growth and provide authorities with greater fiscal flexibility. "We believe that a suitable economic environment should continue to support earnings per share growth and create fiscal space," said JPMorgan analysts. "Although valuations have exceeded the average level, we believe that this level will be maintained as the Straits Times Index re-prices closer to other developed markets under the influence of high yields and currency stability." JPMorgan also adjusted the bullish and bearish scenario target levels for the Straits Times Index to 7,000 points and 5,000 points, respectively.