Optimism in the United States over economic policy gave Wall Street a boost overnight and lifted the local market yesterday.

Investors in a buying mood sent the Straits Times Index (STI) up 11.66 points, or 0.38 per cent, to close at 3,112.81. Gainers trumped losers 315 to 153, on trade of 1.54 billion shares worth $1.02 billion.

UOB Kay Hian analyst Adrian Loh said the market could have risen with positive US sentiment that helped lift the S&P 500 by 0.8 per cent and the Nasdaq by 1 per cent.

"The US government, having kicked the can down the road with the debt ceiling to December, has given the market a bit of a breather," said Mr Loh, referring to the agreement that Democratic and Republican senators struck on Thursday to temporarily lift the US debt ceiling until Dec 3.

Jardine Cycle & Carriage was the top gainer of the day among the STI's 30 constituents. Its shares went up 1.7 per cent to $21.39.

Genting Singapore was at the other end of the spectrum, losing 0.7 per cent to 72.5 cents.

The banks were mixed. DBS shed 0.1 per cent to $30.43, UOB gained 0.3 per cent to $26.29, and OCBC Bank rose 0.5 per cent to $11.62.

Asian markets were mostly up yesterday. Hong Kong's Hang Seng Index rose 0.6 per cent, while Tokyo's Nikkei 225 was ahead by a robust 1.3 per cent.

The Kuala Lumpur Composite added 0.2 per cent and the Jakarta bourse advanced 1 per cent. But Seoul's Kospi fell 0.1 per cent.

Attention has turned to the US job figures due out late last night.

"This economic reading commands the most attention among investors and traders as the... data not only sets the trading tone for today but also influences it for the rest of the month," said AvaTrade chief market analyst Naeem Aslam.

The Federal Reserve is shortly expected to announce when it plans to begin withdrawing its huge financial support measures put in place at the start of the pandemic.

•Additional reporting by Agence France-Presse