Key regional markets rose as yields dropped and a new, single-shot vaccine against Covid-19 was authorised in the United States over the weekend.

Singapore's blue-chip barometer, the Straits Times Index, closed yesterday at 2,973, up 0.81 per cent or 23.96 points.

Japan's Nikkei 225 Index was 2.41 per cent higher at 29,663.50, while Australia's S&P/ASX 200 gained 1.74 per cent to 6,789.60, also bolstered by upbeat economic data and the central bank's upsized daily quantitative easing programme.

Hong Kong's Hang Seng Index was up 1.63 per cent at 29,452.57, while the Shanghai Composite Index rose 1.21 per cent to 3,551.40.

The FTSE Bursa Malaysia Kuala Lumpur Composite Index, however, fell 0.67 per cent to 1,567.14.

South Korea's markets were closed yesterday for a public holiday.

Axi chief global markets strategist Stephen Innes pointed to lower yields as the trigger for a risk market recovery, while Oanda senior market analyst Jeffrey Halley wrote in a report yesterday that "vaccine hopes steady the ship".

Singapore's aviation-related players benefited from the vaccine news, with flag carrier Singapore Airlines flying 5.22 per cent higher to $5.24, ST Engineering up 3.99 per cent to $3.91, SIA Engineering rising 4.41 per cent to $2.13, and ground-handler and in-flight caterer Sats lifting 1.82 per cent to $4.48.

In contrast, Malaysian glove maker Top Glove slipped 5.59 per cent to $1.69, making it one of the biggest losers by value.

Gainers outnumbered decliners 262 to 236 on the broader market, on trade of 2.3 billion securities worth $1.65 billion.