Developers' shares recovered from the declines following the property curb.
The Straits Times Index (STI) ended 37 points or 1.16% higher at 3228.82, taking the year-to-date performance to -5.12%.
The top active stocks were DBS, which gained 1.42%, Singtel, which rose 1.55%, CityDev, which grew 1.69%, UOB, which is up 0.95%, and CapitaLand, with a 1.00% advance.
The FTSE ST Mid Cap Index gained 1.05%, while the FTSE ST Small Cap Index rose 0.66%.
According to OCBC Investment Research, the Dow had its best day in a month, jumping by triple digits to close higher for a third straight session, as U.S. stocks posted a broad rally, with strong economic data appearing to offset worries about rising trade tensions.
Six out of eleven S&P 500 industries ended higher, led by Financials (2.32%) and Industrials (1.81%) while Utilities (-3.13%) and Telecommunication Services (-1.42%) led the declines.
"Continued gains on Wall Street overnight could keep local sentiment fairly positive today," OCBC Investment Research said.
Do you know more about this story? Contact us anonymously through this link.