ASIAN markets staged a surprise comeback yesterday following sharp falls on Monday.

Taking heart from overnight gains on Wall Street, the benchmark Straits Times Index (STI) added 34.06 points, or 1.3 per cent, to 2,663.31.

Other markets fared well as well, with Hong Kong and Taiwan markets chalking up gains of more than 2 per cent.

Only mainland Chinese markets bucked the trend, as investors took profits ahead of the country's week-long national holiday.

Back at home, 2.51 billion shares worth $1.59 billion changed hands during the day.

Traders took Wilmar's sharp fall on Monday as a cue to buy. The stock rose 10 cents to $6.51 after a rebound in the price of palm oil.

The recent pullback in Wilmar's share price provided an excellent entry opportunity ahead of its listing of China assets, said Kim Eng analyst Rohan Suppiah.

'Based on indicative IPO valuations, Wilmar is valued at $7.50 per share, with potential upside from a better-than- expected launch of Wilmar China.'

Wilmar's share price has shown increasing correlation to the Hang Seng and Shanghai indexes, given interest in the enormous potential for unlocking value from the initial public offering in Hong Kong, he added.

Property stocks were buoyed by optimism that Singapore's population rise to 4.99 million as at end-June - from 4.84 million as at June last year - will bode well for the sector.

'We view this favourably for the long-term prospects for the private residential sector,' said DBS Vickers.

It added that the continued inflow of foreigners and permanent residents 'would help ensure greater stability in the private rental market, even as housing completions increase'.

CapitaLand added three cents to $3.68 while City Developments rose 24 cents to $10.28.

Of the 30 STI component stocks, only NOL dipped into the red, closing one cent lower at $1.74.

Advanced Holdings surged 6.5 cents, or 20.97 per cent, to 37.5 cents in its third day of gains. The firm, in response to a Singapore Exchange (SGX) query, disclosed it was negotiating a merger and acquisition deal in China.

'The company has just begun discussion and the outcome of the negotiations remains uncertain,' it said.

Another firm that prompted an SGX query, Transview, had seen its shares jumping 60 per cent in the previous three trading sessions.

Its stock tumbled four cents, or 17.78 per cent, to close at 18.5 cents yesterday.

Wholly owned subsidiary Transview Resources has signed a share placement agreement with Trafford Resources to subscribe for 6.203 million new shares at 25 Australian cents apiece, representing 10 per cent of Trafford's issued share capital.

The stake is worth about A$1.55 million (S$1.9 million).

Ying Li International Real Estate, which develops high-end commercial and retail properties in Chongqing, added one cent to 86.5 cents with 40.33 million shares changing hands.

DBS Vickers started its coverage of the stock with a buy rating and target price of $1.17.

It reckoned the firm is 'well positioned to benefit from Chongqing's growth and the city's massive urban renewal plan'.

yanghw@sph.com.sg