Singapore shares closed 0.89 percent higher on Thursday, buoyed by solid manufacturing surveys in the United States and China that fed optimism among investors.

The China HSBC flash Manufacturing Purchasing Managers Index rose to a 13-month high of 50.4 in November, indicating factory activity was picking up and pointing to reviving economic growth after seven consecutive quarters of slowing.

U.S. stocks ended modestly higher overnight, but volume was one of the year's lowest on the day ahead of the U.S. Thanksgiving holiday.

U.S. manufacturing grew in November at its quickest pace in five months, with a rise in domestic demand hinting that factories could provide a boost to economic growth in the fourth quarter.

German Chancellor Angela Merkel said a deal to release emergency aid to Greece was still possible next Monday when euro ministers meet.

OCBC Investment Research said people are not going to be too confident holding really big positions. The research house added that market is now "driven by whatever rumors and corporate action. "

Phillip Securities Research said "underlying macro conditions see the rate of slowdown in Asia easing, China bottoming, and the U.S. mixed in our opinion - housing is good, consumption has been heavily-supported by dips into savings, and investment sentiment crushed by the fiscal cliff uncertainty. If the U.S. can reach a political compromise on the fiscal cliff, a rebound in investment could be catalytic for market."

Singapore's benchmark Straits Times Index rose 26.33 points to 2,986.63 points. Trading volume was 2.92 billion shares worth 1.24 billion Singapore dollars. Advancers outnumbered decliners 280 to 126, while 552 stocks did not move.

Among top actives, Olam International shed 0.6 percent to 1.59 Singapore dollars. The commodity trading firm took its battle with research agency Muddy Waters to court on Wednesday as it fought off criticism of its accounting practices and debt levels that hit its bond and share prices.

OCBC Investment Research said "the lawsuit may be a mixed bag for them. While it is good Olam is taking the approach to defend itself, the other side of the coin is that lawsuits like this are particularly expensive, long-drawn and in a worst-case scenario, could divert management." The research house added a win in court probably is not enforceable as Muddy Waters is not registered in Singapore.

CapitaMall Trust lost 2.4 percent to 2.06 Singapore dollars. The largest shopping mall owner in Singapore said on Thursday it plans to raise 250 million Singapore dollars through a private placement of 125 million new units. CIMB Research lowered CapitaMall Trust to "Underperform" from "Outperform", saying " despite a fairly good placement price with only 4 percent dilution, we are disappointed that CapitaMall Trust has chosen to raise equity in the absence of major funding needs for acquisitions and asset enhancing initiatives. Post-dilution yields are not compelling and we see selling pressure."

Among top gainers, Jardine Cycle and Carriage rose 2.3 percent to 48.16 Singapore dollars, while Jardine Matheson became one of the top losers by falling 0.5 percent to 58 U.S. dollars. (1 U.S. dollar equals to 1.22 Singapore dollars) Endi

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