SINGAPORE - Singapore shares have rebounded on rising oil prices and a rally in Hong Kong despite concerns over North Korea's missile launch.

The Straits Times Index had climbed 1 per cent or 32.04 points to 3,243.21 by 4pm, led by Hutchison Port Holdings Trust and the banks.

DBS Group rose 1.7 per cent or 35 cents to $21.04, UOB jumped 1.9 per cent or 44 cents to $23.34 and OCBC Group gained 1.6 per cent or 17 cents to $10.78.

"Oil prices are on an uptrend, while property counters like CapitaLand and City Developments underperformed amid the rising interest rate environment and more major central banks turning hawkish," CMC Markets analyst Margaret Yang said.

City Developments fell 0.5 per cent or five cents to $10.64, CapitaLand inched up one cent or 0.3 per cent to $3.52 while UOL was flat at $7.62.

The United States Federal Reserve is due to release minutes from its June policy meeting. These should give clues about interest rates ahead of Friday's key jobs report.

Meanwhile, local energy plays got a boost from oil's continued ascent. Keppel Corp gained 0.9 per cent or six cents to $6.40, Sembcorp Marine rose 2.1 per cent or 3.5 cents to $1.705 and Sembcorp Industries climbed 1.3 per cent or four cents to $3.17.

US oil prices are up 0.1 per cent to US$47.13 a barrel. Oil has rallied more than 10 per cent after falling into a bear market last month.