The uncertainties over a coronavirus vaccine and faltering stimulus talks in the United States left regional investors in a defensive mode yesterday.
The wary mood sent the Straits Times Index (STI) down 12.06 points, or 0.47 per cent, to 2,555.59, despite more encouraging economic data released for the third quarter yesterday.
Losers beat gainers 228 to 167, with 1.53 billion shares worth $1.13 billion traded.
Stellar results for Medtecs and stalled coronavirus vaccine trials appear to have buoyed investor sentiment in other medical suppliers.
Top Glove rose 3.02 per cent to $3.07, while fellow Malaysian company Riverstone added 3.41 per cent to $3.94, making them among the better performers yesterday.
Brokerage house CGS-CIMB reiterated a call to add Top Glove. It said: "We continue to like (it) as it is the key beneficiary of higher glove demand owing to Covid-19, given its position as the world's largest glove maker."
Another medical-related company, QT Vascular, was the most heavily traded stock, with a volume of 228.8 million shares done as it jumped 33.3 per cent to 0.8 cent.
Mapletree Industrial Trust was the STI's worst performer, shedding 2.7 per cent to $3.25.
Asian markets were generally down after Wall Street ended in the red overnight after vaccine trials were halted and fresh fiscal measures appeared elusive.
The Kospi in Seoul closed down 0.94 per cent, its biggest fall since Sept 24, while Australia's S&P/ASX 200 index slipped 0.27 per cent to snap a seven-day winning streak on concerns about the slow reopening of state borders and their struggling economies.
Shanghai shares dropped 0.56 per cent, while Malaysia's KLCI Index was down 0.13 per cent.
The Nikkei 225 in Tokyo bucked the trend, adding 0.11 per cent, as did Hong Kong's Hang Seng, which gained 0.07 per cent.
Analysts said investors had also by now priced in any expectations for a Democratic sweep of the White House and Congress in next month's elections that many expect will see a ramped-up new stimulus for the battered US economy.
"Anxiety over second-wave resurgence of Covid-19, which is now apparent in many major economies, is... clouding the view where the question remains how activity curtailment measures feed through into economic and mobility activity," said Axi strategist Stephen Innes.
"And on that front, risk has also deteriorated as participants mulled over the implications of another vaccine trial setback."
• Additional information from Agence France-Presse