Chetan Seth, a strategist at Nomura Securities, said the Singapore stock market could benefit as the global economy reopens and recovers from the epidemic.

"six or seven months ago, our view of Singapore became more constructive," Seth, Asia Pacific equity strategist at Nomura Securities, said in an interview.

He pointed out that the Singapore stock market could be one of the best options for reflation, economic reopening or cyclical recovery trading in the region. Nomura Securities holds a neutral view on the country's overall market.

Singapore banks tend to perform well when US 10-year Treasury yields rise, says Mr Seth. The country's bond yields tend to follow and become a big driver for lenders. This helps push Singapore to outperform other countries in the region recently, the strategist said.

But Seth points out that Singapore's future outlook is still "a bit tricky" and depends on the outlook for 10-year US Treasury yields.

It is reported that in March this year, the Fed said that it did not intend to raise interest rates in the short term, nor did it plan to reduce the size of bonds, so the yield on US 10-year Treasuries jumped to more than 1.7 per cent at one point.

However, yields began to fall because of concerns about inflation and slowing economic growth. The yield on the 10-year treasury note recently fell below 1.2%, followed by a slight rebound.

Looking ahead, Seth believes that Singapore's banks may continue to perform well if US 10-year Treasury yields return to 1.6 per cent or 1.7 per cent.

Prospects for Indonesia and Malaysia

Seth said Nomura currently has a "underweight" rating on the Malaysian stock market because the structure of the stock market "does not really help to maintain excellent performance".

"if you look at last year, Malaysia is one of the most resilient markets in Asia because some areas of the market, such as glove manufacturers, are doing very well," the strategist said. However, this trend has been reversing, so I think it may continue to depress the market as a whole. "

Malaysia is one of the few markets in Southeast Asia to grow by 2020. Meanwhile, share prices of glove makers, including Top Glove, the world's largest maker of medical gloves, have soared on the back of a surge in demand driven by the epidemic. But then the trend reversed. Shares of Malaysia-listed Top Glove have fallen more than 30 per cent so far this year.

In addition, for Indonesia, Seth said he likes markets in the middle of the cycle, but last week, Indonesia reported the largest number of new confirmed cases of COVID-19 in the world, according to the World Health Organization, warning that the COVID-19 epidemic in the country is still a short-term risk.