(RTTNews) - One day after ending the modest two-day winning streak that saw it add more than 40 points or 2.3 percent, the Singapore stock market turned right back to the upside on Friday. The Straits Times Index regained the 1,700-point level, although analysts are not sanguine about the market’s chances of holding that line at the opening of trade on Monday.

The global forecast for the Asian markets is modestly negative, although analysts say that the passage of the U.S. economic stimulus package could offset some of the losses - but concerns over the health of the financial sector are expected to keep markets in the red. Weak economic and corporate data add to the overall negative sentiment. The European markets finished firmly in positive territory, while their U.S. counterparts all ended below the unchanged line - and the Asian markets are tipped more towards the latter group.

The STI finished sharply higher on Friday, thanks to major gains in the financial sector. The property stocks also finished with significant gains, as did the telecoms. For the day, the index jumped 20.68 points or 1.23 percent to close at 1,705.64 after trading between 1,693.10 and 1,710.15. Among the gainers, United Overseas Bank was up 2.9 percent, while DBS added 3.2 percent, CapitaLand gained 2.6 percent and Singapore Telecoms was up 2.5 percent.

The lead from Wall Street is mixed as stocks ultimately ended Friday’s trade firmly negative after showing a lack of direction throughout much of the session as investors liquidated some positions before the long weekend that includes Monday’s holiday for President’s Day. The uncertainty in the markets came about as weak volume caused increased volatility as investors responded to some mixed news - despite the passage of the U.S. economic stimulus package.

The U.S. Senate on Friday passed a $787 billion economic stimulus and recovery package, meeting a self-imposed deadline to have the measure ready for President Barack Obama’s signature by Presidents’ Day. Earlier in the day the House passed the same bill on a largely party-line vote of 246 to 183, with no Republicans voting for it. In the Senate vote of 60 to 38, three Republicans broke ranks to get the bill across a crucial 60-vote hurdle in a procedural vote that also counted as final adoption of the measure.

On the corporate front, PepsiCo (PEP) reported quarterly results on Thursday that included an adjusted earnings figure that rose year-over-year and came in line with expectations. The company also said that it expects moderate earnings and revenue growth for full-year 2009.

Meanwhile, in economic news, Reuters and the University of Michigan said their consumer sentiment index fell to a reading of 56.2 in February from a reading of 61.2 in January. Economists had been expecting a more modest decrease by the index to a reading of about 60.2. Additionally, mass layoff events showed a substantial increase in the fourth quarter of 2008, according to a report released by the Labor Department, with both layoff events and separations reaching their highest levels on record.

In other news, President Obama addressed the Business Council at the White House, saying that the long-term recovery would take “years, not months.” As he spoke, Obama pressed for bold action and assistance from the business community. Obama said his administration would be looking to the business community “for your help not only crafting the policies of the 21st century, but crafting a government for the 21st century.”

The major averages showed a notable downward move going into the close, ending the day well below the unchanged line. The Dow closed down 82.35 points or 1.0 percent at 7,850.41, the Nasdaq closed down 7.35 points or 0.5 percent at 1,534.36 and the S&P 500 closed down 8.35 points or 1 percent at 826.84. After seeing some strength last week, the major averages all posted weekly losses for this week due to largely to the sell-off seen on Tuesday. The Dow fell 5.2 percent for the week to set a two-month closing low, while the Nasdaq and the S&P 500 posted weekly losses of 3.6 percent and 4.8 percent, respectively.

In economic news, retail sales in Singapore rose 20.1 percent in December from November at current prices, following a 3.4 percent fall in the previous month, a report by the Department of Statistics said Friday. Excluding motor vehicle sales, retail sales increased 20.6 percent. After adjusting for seasonal effects, retail sales increased 2.7 percent month-on-month in December, after declining 5.2 percent in the previous month. Excluding motor vehicles, sales were down 2.9 percent. Year-on-year, retail sales fell 1.6 percent in December, and excluding motor vehicles, it fell 3.7 percent. Economists expected sales to fall 5.6 percent.

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