SINGAPORE trumps traditional rival Hong Kong to emerge as Asia's No. 2 Centre of Commerce, according to the 2008 Mastercard World Centres of Commerce Index.

The index evaluates and ranks how major cities compare in performing critical functions that connect markets and commerce around the world.

Singapore also ranks fourth globally, moving ahead of Hong Kong who is sixth in this year's index.

The Lion City shines as a financial hub and is recognised for its ease of doing business, economic stability, as well as legal and political framework.

Tokyo continues to be Asia's top city for its livability.

While London remains the global economy's most influential city, Asian and Eastern European cities dominate with its eight city stronghold in the top 25 cities worldwide.

Taipei too is making a dent as a key centre of commerce, debuting at No. 22 on the global index.

It joins the three other 'Asian Tigers' - Singapore, Hong Kong and Seoul - ranking well in the financial as well as knowledge creation and information flow dimensions.