Upbeat trade news nudged a majority of Asian markets higher yesterday, although Singapore was an exception as it ended slightly lower.
Singapore's Straits Times Index retreated 5.02 points, or 0.16 per cent, to 3,220.63.
Malaysia's Kuala Lumpur Composite Index also lost 0.3 per cent.
In contrast, South Korea gained 1 per cent, while key indices in Japan were up between 0.6 per cent and 0.8 per cent.
Australia managed a smaller gain of 0.3 per cent.
In Hong Kong, the Hang Seng Index surged 1.5 per cent following peaceful district elections that saw pro-democracy parties sweep 388 out of 452 seats and gain control of 17 out of 18 district councils.
China's markets had mixed results, with the Shanghai Composite up 0.7 per cent, while the Shenzhen Composite Index lost 0.4 per cent.
The trade news involved China's announcement over the weekend that it would raise penalties on intellectual property theft, an issue that had been a sticking point for the United States, giving investors hope that the two countries are getting closer to a deal.
FXTM market analyst Han Tan said: "The move suggests that key concessions are being made in order to increase the prospects of a partial US-China deal, which is giving investors another opportunity to capitalise on risk-on trading activity."
Chinese tabloid Global Times also quoted experts close to the Chinese government as saying that the United States and China are close to a deal and Beijing is committed to continuing talks for further agreements.
However, Mr Stephen Innes of AxiTrader noted: "This type of headline will be that much more believable when both parties schedule a date and venue to put pen to paper on phase one, and for the US to make an official announcement about delaying December tariffs. Such simple steps would go a long way to ensuring investors' confidence in the holiday season."
Turnover on the Singapore bourse was 1.36 billion securities worth $1.14 billion.
Losers outnumbered gainers 202 to 167.
Rex International Holding was the most active counter, gaining 3.5 per cent to 18 cents on a volume of 171.4 million shares.
It was followed by Golden Agri-Resources, which lost 4.4 per cent to 22 cents with 115.5 million shares traded.
