Singapore companies' earnings beat expectations by 9.6%

But excluding the volatile Real Estate sector, the beat is only 3.5%.

Here's more from Morgan Stanley:

A third of the MSCI SEA companies have reported their Q2 earnings with 57% beating consensus expectations. Interestingly, Domestically Oriented companies beat high earnings expectations whereas Globally Linked companies missed their low earnings expectations for the quarter. Please see the attached review for Q2 earnings performance thus far.

56 out of 136 MSCI SEA companies have reported their earnings so far. 32 companies beat expectations, whereas 23 have missed consensus expectations. Overall, SEA companies that have reported so far have beaten expectations by 330 bps. Excluding three volatile sectors, Indonesia and Thailand Energy & Materials and Singapore Real Estate, the beat is even better at 610 bps. Banks earnings have stood out, beating consensus by 1,890 bps, 420 bps and 210 bps in Indonesia, Thailand and Singapore, respectively.

Although only 50% of MSCI Singapore companies have reported so far, the earnings beat has been 960 bps. Excluding the volatile Real Estate sector, the beat is 350 bps.