SINGAPORE (Reuters) - JP Morgan analysts upgraded Singapore equities to overweight on Wednesday, citing inexpensive valuations, high dividend yields as well as government initiatives to revive the domestic stock market.

In a note after Singapore's budget on Tuesday, analysts at JP Morgan set a bull case target for the Singapore benchmark index of 4,200, implying about a 6% rise from current levels.

The index touched a record high of 3,949.65 on Wednesday and is up 4% so far in 2025 after rising 17% last year mainly driven by bank stocks and optimism around the measures aimed at reviving the stock market.

"We believe the household and business supports should keep economic activities strong, whilst investment into innovation and boosting the equities market would open up new opportunities for growth," JP Morgan analysts said in a note.

(Reporting by Ankur Banerjee in Singapore; Editing by Muralikumar Anantharaman)