07/04/2011 (Channel News Asia) - Singapore shares tracked gains on Chinese and Hong Kong bourses to end 0.7% higher on Wednesday, with the blue-chip Straits Times Index (STI) closing 23.58 points higher at 3,170.33.

Hong Kong gained 0.56% and Shanghai jumped 1.14% as investors took in their stride another interest rate hike by the Beijing government as it battles to rein in inflation in the world's second biggest economy.

The move on Tuesday by the People's Bank of China to raise benchmark lending and deposit rates by 25 basis points didn't weigh on sentiment much as it was largely expected after recent inflation data. And analysts see the hike as a step towards bringing inflation under control in the next few months.

On the Singapore Exchange, overall volume traded was 1.65 billion shares worth S$1.5b, with gainers outnumbering losers 337 to 161.

Commodity-linked plays were among the gainers. Palm oil producer Golden Agri-Resources rose 2.1% to S$0.715 while supply chain manager Olam International added 2.1% to S$2.89. Noble Group gained 0.9% to S$2.23. But Wilmar International bucked the trend by easing 0.4% to S$5.36.

Singapore Exchange ended down 0.1% at S$8.32, after its 4% gain on Tuesday that came after the Australian Treasurer Wayne Swan said he was inclined to reject SGX's proposed merger with ASX. The stock had spent most of Wednesday in the green, reaching an intraday high of S$8.46 before easing off in late trading.