Singapore shares closed 0.7 percent higher on Thursday, fuelled by hopes for the Donald Trump administration's economic policies such as boosting infrastructure spending.

However, the prospect of higher U.S. interest rates under a Trump presidency also weighed on market sentiment as capital outflow from emerging markets may escalate amid U.S. interest rate hike.

Meanwhile, crude oil prices eased as a bigger-than-expected U.S. crude inventory build offsets Russia's comments about a possible meeting with Saudi Arabia that renewed hopes for a production freeze deal.

Singapore's benchmark Straits Times Index rose 19.49 points to 2,813.48 points. Trading volume was 1.42 billion shares worth 1.22 billion Singapore dollars. Advancers outnumbered decliners 204 to 197, while 504 stocks did not move.

M1 Limited fell 2.2 percent to 1.995 Singapore dollars. AirYotta said that it was withdrawing its bid for a license to operate a telecommunications service network in Singapore.

Singapore's Media Development Authority said two companies, MyRepublic and TPG Telecom, have qualified to participate in its spectrum bandwidth auction.

M1, the smallest of three existing operators in Singapore, is widely seen most vulnerable to the entry of new rival as it earns most of its revenue locally.

Midas Holdings rose 4.7 percent to 22.5 Singapore cents. The Singapore-listed aluminum extrusion products maker says its joint venture in China has won contracts worth 2.59 billion Chinese yuan to supply train cars for four projects. The contracts for Nanjing Puzhen Rail Transport, which is 32.5 percent owned by Midas, include orders from metro train systems in Nanjing and Shanghai.

Among the top gainers, Jardine Matheson rose 1.8 percent to 55.47 U.S. dollars, whereas Great Eastern Holdings became one of the top losers by falling 0.7 percent to 20.53 Singapore dollars. (1 U.S. dollar equals to 6.867 Chinese yuan and 1.42 Singapore dollars)