Hopes of further stimulus measures in China gave Singapore investors a bit more incentive to take a few risks yesterday.
The Straits Times Index (STI) opened lower, but the improved mood overturned those losses before the midday break, en route to a 19.80-point or 0.6 per cent gain to close at 3,258.66.
Elsewhere, China, Hong Kong, Japan, Malaysia and Taiwan all rose but Australia closed lower, while South Korea barely moved.
After losing 5 per cent last week, the Hang Seng Index managed to turn in a positive showing, ending 1.4 per cent higher at 26,681.09.
AxiTrader chief Asia market strategist Stephen Innes noted that "geopolitical risks remain of little concern for markets as trade talk euphoria masks all other matters".
Beijing and Washington said at the weekend that trade talks were "constructive", easing worries that earlier progress had hit roadblocks.
"But suffice to say, these talks have been far from 'conclusive', given the contentious nature of the sticking points, lowering the chances of either side conceding quickly," noted Mr Vishnu Varathan, of Mizuho Bank.
Observers do not need to look far to see the effect the year-long trade squabble has had. Singapore's non-oil domestic exports (Nodx) posted an eighth straight month of decline and missed forecasts. United Overseas Bank (UOB) economists expect "Nodx to contract 8.5 per cent in 2019, while Singapore's trade outlook remains hinged on the US-China trade developments".
Trading volume here stood at 1.60 billion shares worth $1.09 billion, with gainers trumping losers 244 to 163.
Yangzijiang Shipbuilding was the STI's most active with 94.8 million shares changing hands. It closed at $1.08, up 8 per cent.
Along with the Hang Seng Index's recovery, the Jardines, which have considerable exposure to Hong Kong, ended higher. Jardine Matheson added 0.5 per cent to US$57.20, Jardine Strategic gained 2.7 per cent to US$32.55, while Hongkong Land was up 1.9 per cent at US$5.49.
The banks were mixed. UOB added 0.7 per cent to $26.93, DBS dipped 0.1 per cent to $26.60, while OCBC rose 0.4 per cent to $11.19.
Among counters in the second line, BRC Asia put on 3.4 per cent to $1.52 after CGS-CIMB initiated coverage on the firm, a supplier of prefabricated steel products, with an "add" call and a target of $1.90. It cited BRC's ability to benefit from the recovery of Singapore's construction sector.
