SINGAPORE (Dow Jones)--The Singapore dollar was flat against the U.S. dollar in late Asia trade Friday with investors staying on the sidelines while awaiting fresh readings on the global economy. Traders and analysts said that the market is likely to remain cautiously optimistic on the global economy's recovery following the release of disappointing U.S. economic data overnight. "Also, there are worries that the pace of China's growth might slow down and that will in turn drag on the global growth story," said a trader with local bank. "But, the outlook for Asia remains bullish and investors are willing to bet on regional currencies." Another trader with a foreign bank said that sentiment remained weak Friday following overnight data that suggested manufacturing activity was cooling in parts of the U.S. "People are caught between the bad news from the U.S. and bullish sentiment toward Asia. I think, for next week, investors will see how the stock markets behave before deciding to build up an appetite for risk," said the trader. In the local bond market prices were mostly flat as investors were keen to bet on equities amid the positive sentiment generated by Singapore's strong second-quarter gross domestic product growth figures published Wednesday. "Also, with no fresh domestic supply, people don't want to take big positions in bonds," another trader with a local broking house said. -By P.R. Venkat, Dow Jones Newswires; +65 64154 152; venkat.pr@dowjones.com

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