They said investors were chasing bargains although worries over the fate of the United States economy remained.

The Straits Times Index closed 69.28 points higher at 3,077.08 on volume of 1.51 billion shares worth $2.14 billion.

Rising issues led decliners 540 to 187 with 1,030 issues unchanged.

US stocks powered higher on Friday as a blockbuster Microsoft bid for Yahoo helped Wall Street shake off a shock report showing the first decline in jobs for the US economy in more than four years.

Most investors in Singapore will continue to track movements in the US and Hong Kong markets in the short term, said Gabriel Yap, dealing director at DMG and Partners Securities.

'We are in a bear market for the last four months and this will last until the end of the second quarter,' while investors continue to price in a US recession scenario, he said.

Song Seng Wun, regional economist at CIMB-GK Research, said in a note to clients that Monday's gains may be temporary because of continuing debate over the fate of the global economy.

Wariness remains over the possibility of more gloomy economic news, he said.

'So it may be another tough week for investors,' Mr Song said.

In the banking sector, DBS Group Holdings rose 28 cents to $17.98, United Overseas Bank gained 58 cents to 18.50, and Overseas-Chinese Banking Corp ended 13 cents higher at 7.63.

Singapore Telecommunications was three cents higher at 3.86 ahead of its third-quarter earnings report on Tuesday.

Among property stocks, CapitaLand ended 19 cents higher at 5.99, Keppel Land rose eight cents to 6.28, and City Developments gained 50 cents to 12.00.

Agribusiness group Wilmar International ended 25 cents higher at 4.28. -- AFP