Against the backdrop of positive vaccine developments and upbeat Chinese data, the benchmark Straits Times Index (STI) rebounded from the previous day's loss to close 8.17 points, or 0.29 per cent, higher at 2,814.12.

The results of a business survey released yesterday showed that activity in China's factory sector accelerated at the fastest pace in a decade last month.

On the vaccine front, biotech firm Moderna on Monday said it is filing for United States and European emergency regulatory approval of its coronavirus vaccine.

Among the STI constituents, Yangzijiang Shipbuilding emerged at the top of the table, gaining 4.55 per cent to close at 92 cents.

The company said on Monday that it has signed agreements totalling about US$226 million (S$303 million) to build and deliver nine vessels.

Despite the deferment of the Singapore-Hong Kong air travel bubble, Singapore Airlines shares ended the day in the black, rising 0.92 per cent to $4.38.

Advancers outnumbered decliners 250 to 197 for the day, with 2.35 billion securities worth $1.34 billion changing hands.

Across the region, Asian markets similarly made gains yesterday.

The Nikkei 225 Index in Japan gained 1.34 per cent to end at 26,787.54; South Korea's Kospi closed 1.66 per cent higher at 2,634.25.

Hong Kong's Hang Seng Index jumped 0.86 per cent to 26,567.68, and the Shanghai Composite Index rose 1.77 per cent to close at 3,451.94.

Mr Olivier d'Assier, head of applied research for the Asia-Pacific at Qontigo, said last week's "large improvement in sentiment" for Asia ex-Japan helped markets "score their best months in several years".

"As risk appetite recovers globally, we could see further gains for the traditional year-end rally."