Singapore's FTSE Straits Times index advanced 0.5% to a record 5,011.11, breaching the psychologically important 5,000-point level for the first time, helped by consumer and financial stocks.

Eugene Koh, sales trader at CMC Markets Singapore, said the Singapore rally was largely due to the banking sector, with DBS, OCBC, and UOB near record highs.

Along with the strong financial sector, structural policy reforms, initiatives to improve market structure, and a strong currency have supported foreign returns and confidence in Singapore as a stable regional banking hub, Koh said.