Investors shrugged off Wall Street's poor showing and worrying signs that this week's trade talks between the US and China have hit some pre-talk speed bumps, to send shares mostly higher yesterday.
The Straits Times Index (STI) closed at 3,110.85, up 11.37 points or 0.37 per cent.
Elsewhere, Australia, China, Hong Kong, Japan and South Korea all rose while Malaysia was flat.
Markets in China and Hong Kong returned from a break and received a boost after Chinese service-sector data for last month grew at its slowest pace in seven months. This raises hopes that Beijing will roll out further stimulus measures to support the economy.
While regional benchmarks were positive yesterday, markets could remain twitchy until the end of the week. After all, reports on Monday suggested China was not interested in a broad-based trade deal with the US, preferring instead to narrow the scope of issues it wishes to resolve.
Shortly after, the United States expanded its blacklist to include more Chinese firms and government agencies for what the Trump administration said was due to China's treatment of Muslim minorities in Xinjiang province.
China's rebuttal was expected, and by yesterday afternoon it issued a statement urging the US to withdraw the decision, warning it could retaliate.
Liquidity in Singapore improved with China and Hong Kong resuming trading, but some investors still stayed on the sidelines.
Trading volume clocked in at 941.73 million shares worth $970.56 million, with gainers outpacing decliners 188 to 169.
Golden Agri-Resources was the STI's most active counter with 52.3 million shares traded as it edged up 2.4 per cent to 21.5 cents.
The blue-chip index's laggards included Hongkong Land, which ended 1.1 per cent lower at US$5.45.
The property player's shares have been trading below their historical averages after sell-offs due to months of protests in Hong Kong, and meant value for punters hoping the situation would improve.
But with little sign of the protests easing off, one trader said: "There are too many variables with regard to Hong Kong... I think it's best to play safe and hold fewer Hong Kong-listed assets until the situation shows signs of improving."
Other Hong Kong plays rose. Jardine Matheson Holdings was up 1.6 per cent to US$54.04 and Jardine Strategic Holdings advanced 1.2 per cent to US$29.70.
