Most Southeast Asian stock markets picked up on Friday after two consecutive sessions of losses on speculation that the US Federal Reserve might stop its tightening cycle after an expected rate hike at its meeting later this month.
The Wall Street Journal reported that Fed officials are considering whether to signal a new wait-and-see mentality after a likely rate increase at their meeting in December.
Bolstered by the report, the MSCI's broadest index of Asia-Pacific shares outside Japan nudged up 0.4 percent, following a 1.8 percent fall on Thursday.
However, markets also remained cautious over concerns that the arrest of a top executive of Chinese tech giant Huawei could dampen the possibility of a trade deal between Washington and Beijing.
"The underlying risk sentiment whatever we see for Asian markets today is relief rather than exuberance," said Vishnu Varathan, head of economics and strategy at Mizuho Bank in Singapore.
"I think that (Huawei top executive's arrest) is really going to be the thing that hems in any semblance of optimism or relief that the markets gather from the Fed. This (the relief) can quite easily dissipate when they think of the broader challenges for an amicable resolution to US-China trade relations," he added
Singapore stocks climbed 0.5 percent, underpinned by industrials and consumer non-cyclicals.
Index heavyweight Jardine Matheson Holdings Ltd gained 2.1 percent, while DBS Group Holdings Ltd edged up 0.5 percent.
Meanwhile, financial and consumer staples drove the Vietnam benchmark 0.5 percent higher.
Vietnam Dairy Products JSC rose 1.8 percent and Joint Stock Commercial Bank for Investment and Development of Vietnam strengthened 1.3 percent.
Indonesian stocks inched up 0.2, supported by a rise in consumer discretionary and real estate stocks, while industrials and materials drove the Thai index 0.3 percent higher.
The Philippines bucked the trend, falling 0.7 percent, pulled lower largely by industrial stocks.
Losses were dominated by JG Summit Holding Inc and Ayala Land Inc which shed 3.4 percent and 1.2 percent, respectively.
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