Singapore shares tracked gains on Wall Street overnight to snap a four-day losing streak yesterday.
The better session in the United States followed a "broad-based sell-off at the start of the week", said IG market strategist Pan Jingyi, who added that investors will be keeping an eye on the Federal Reserve talks and economic data such as the Purchasing Managers' Index and jobless claims.
Mr Stephen Innes, chief global markets strategist at AxiCorp, noted: "Although the central banks can do more, equity markets have likely reached their multiple policy deluges' saturation point.
"And, as such, the stock markets might continue to struggle to make new highs until there are more positive signs of real economic growth."
The more buoyant mood drove the Straits Times Index (STI) 17.85 points, or 0.72 per cent, higher at 2,481.14, with gainers outpacing losers 244 to 153 on trade of 1.31 billion shares worth $1.1 billion.
The top-performing STI component stocks were CapitaLand Commercial Trust and Singapore Airlines (SIA), which both rose 3 per cent. CapitaLand Commercial Trust ended at $1.71; SIA at $3.46.
Singtel was the most heavily traded stock, with 31 million shares changing hands. It was also the fourth-best performer on the blue-chip index, up 1.9 per cent to $2.20.
The shares had fallen to $2.16 on Tuesday - the lowest in 12 years - as heavy volumes changed hands.
Only three of the 30 STI stocks ended in the red. Hongkong Land fell 0.8 per cent to US$3.65, Jardine Strategic Holdings dipped 0.7 per cent to US$20.78, and Jardine Matheson Holdings shed 0.6 per cent to US$41.47.
Elsewhere in Asia, stock markets were mixed as investors trod carefully despite Wall Street's rebound.
Hong Kong's Hang Seng Index inched up 0.11 per cent while China's benchmark Shanghai Composite Index rose 0.17 per cent.
South Korea's Kospi added just 0.03 per cent while Japan's Nikkei 225 Index lost 0.06 per cent and the FTSE Bursa Malaysia KLCI Index slipped 0.62 per cent.
Australian shares rallied after a four-day losing streak to record their best day in nine weeks.
The S&P/ASX 200 closed up 2.42 per cent and added A$38 billion (S$37 billion) of market capitalisation.
Ms Pan said: "Comments from US central bankers had not painted a positive picture for Asia markets between Fed (chairman Jerome) Powell's caution on the economy and (Chicago) Fed (president Charles) Evans' remark on lifting interest rates prior to achieving the inflation target, capping the gains here."
