Singapore stock exchange
An SGX sign is pictured at Singapore Stock Exchange Reuters

Singapore stocks jumped to more than a two-year high on Tuesday, in line with a rally in Asian peers after record close on Wall Street overnight.

Wall Street ended Monday higher with all three equity indices closing at record highs on talks about potential merger activity, and speculations about Republicans cutting corporate taxes, that would boost earnings.

The positive sentiment spilled over to Asia with MSCI's broadest index of Asia-Pacific shares outside Japan rising 0.8 percent to a 10-year high.

At 0530 GMT, the Straits Times Index climbed 0.98 percent or 33 points to 3,414. It ended 0.01 percent lower on Monday, taking the year-to-date performance to about 17 percent.

DBS Group Holdings , up 4 percent, was the top gainer. Oversea-Chinese Bank and United Overseas Bank gained over 1 percent each.

Casino operator Genting Singapore gained 3.2 percent after its third-quarter net profit jumped 24 percent from last year, powered by continued strength at its gaming business.

Vallianz Holdings, a provider of offshore support vessels to the oil and gas industry, advanced 12 percent after its profit surged by more than 400 percent in the second quarter, boosted by higher operating profits and the absence of an impairment charge of US$1.62 million recorded last year.

Hotel owner Ascendas Hospitality Trust on Monday reported a 2.9 percent rise in second-quarter distribution per stapled security (DPS), helped by growth in revenue and lower finance costs.

About 1.6 billion shares worth S$850 million changed hands, with gainers outnumbering losers 229 to 168.