The United States has yet to pass a new round of fiscal stimulus, but the hope for government aid has already stimulated key stock markets across the region.
Optimism among local investors helped push the Straits Times Index (STI) up 4.75 points, or 0.19 per cent, to 2,543.11 yesterday - barely changed from the 0.2 per cent gain at the opening bell.
Gainers beat losers 222 to 156, with 975 million shares worth $804.6 million traded.
Thai Beverage was the STI's best performer and the most active. The counter gained 1.71 per cent to 59.5 cents on a trading volume of 24.29 million. The counter was also the most heavily traded stock on Wednesday.
At the bottom of the performance table were two Jardine companies: Jardine Matheson Holdings lost 1.18 per cent to close at US$43.52, and Dairy Farm International dropped 0.76 per cent to US$3.94.
Most Asian markets were buoyed by the overnight Wall Street rally after US President Donald Trump's call for Covid-19 relief measures.
IG market analyst Pan Jingyi said: "Fresh optimism on the US fiscal stimulus front returned to carry markets higher - never mind that the potential tranche of fiscal support, including aid for airlines and other targeted support measures, would be a fraction of the wider package.
"Alongside the accommodative tone held in the September (Federal Open Market Committee) minutes, this altogether provided crutches for the market."
Malaysian shares led the regional rally with a 2.01 per cent gain, while Australia's ASX 200 closed up 1.09 per cent and the Nikkei 225 Index added 0.96 per cent to approach levels reached in February.
South Korea's Kospi advanced 0.21 per cent to clock a rally for the seventh straight session.
Hong Kong's Hang Seng was one of the rare few left out of the party. It slid 0.2 per cent while mainland China ended its Golden Week holiday yesterday.
Brexit talks continue to play on nerves. European Council president Charles Michel said the bloc was keen on a deal "but not at any cost", while British Prime Minister Boris Johnson reaffirmed London's desire for an agreement but said it was prepared to walk away if none was reached by next Thursday.
Fears that the two will not reach a deal by next week's summit are weighing on the pound and worrying markets, with many observers warning it would be economically devastating for Britain as it tries to recover from the virus' impact.
• Additional information from Agence France-Presse
