In contrast, a world gauge is down 22% in what could be its worst year since the 2008 global financial crisis.

A rising interest-rate environment, a shift toward cheaper valuations and economic tailwinds generated by Singapore’s pandemic recovery have helped underpin the benchmark, where banks account for about half of the weighting.

The measure’s lack of exposure to tech shares has helped as well, contrasting its performance with the US and Europe, economies that are struggling with issues ranging from inflation and energy shortages to supply-chain disruptions.

“Until the Fed slows or pivots, developed markets probably won’t catch up” with Singapore, said Daniel Dubrovsky, strategist at DailyFX. The market is focused on the Fed, even after Australia’s smaller-than-expected rate hike this week, and “there is still room for the labour market to absorb a near-term slowdown” in the US, he added.

Forward earnings estimates for Singapore stocks are up about 16% year-to-date, about four times the increase seen for members in the global gauge. Still, Singapore’s trade-dependent economy isn’t without risk – factory activity contracted in September for the first time since June 2020 and retail sales show signs of slowing.

Auto distributor Jardine Cycle & Carriage Ltd is the top performer on the Straits Times Index this year, up 72%, followed by utilities firm Sembcorp Industries Ltd’s 53% advance. Shares of DBS Group Holdings Ltd, the biggest stock on the gauge, are up 2.3%.