The mood has been more buoyant in recent days but local investors seemed to lose the thread yesterday, with Singapore shares defying regional trends to end lower.
The Straits Times Index (STI) slipped late in the session to end down 2.58 points or 0.1 per cent at 3,144.48 - but ahead 37.96 points or 1.2 per cent for the week.
Confidence had returned to the markets as the week progressed due to an apparent de-escalation in the trade dispute between the United States and China, but the effect of Hong Kong Chief Executive Carrie Lam's significant concession to withdraw the extradition Bill proved to be the difference for Asian markets gaining this week.
The boost carried over into trading elsewhere yesterday, with Australia, China, Hong Kong, Japan, Malaysia and South Korea all rising.
The Hang Seng gained 0.7 per cent yesterday and was up 3.8 per cent for the week, its biggest weekly gain since June.
"Only a presidential tweet could take the wind out of Asia's sails this morning," Oanda Asia-Pacific senior market analyst Jeffery Halley noted, referring to US President Donald Trump.
FXTM senior research analyst Lukman Otunuga acknowledged that improved market moods were welcomed but cautioned that stock gains could be capped by eventual investor scepticism, adding: "Lessons from the past have certainly illustrated the unpredictability of the Trump administration when it comes to trade developments."
Trading volume here clocked in at 897.04 million shares worth $1.01 billion, with gainers trumping losers 208 to 158.
The blue-chip benchmark had six of its 30 counters closing in the red.
Yangzijiang Shipbuilding was the most active counter on the STI on each trading day this week. The shipbuilder closed up 1.6 per cent at 98 cents yesterday with 43 million shares changing hands.
The local banks also closed higher. DBS added 0.5 per cent to $24.76, OCBC was up 0.7 per cent at $10.85 and UOB put on 0.9 per cent to $25.50.
Hutchison Port Holdings Trust edged down 0.6 per cent to 15.6 US cents, following news that it will be dropped from the STI on Sept 23.
Mapletree Commercial Trust, which will join the STI in place of Hutchison Port Holdings Trust, fell 1.8 per cent to $2.24.
