Singapore shares closed higher on Tuesday, tracking Wall Street gains overnight ahead of key inflation data from the US.

The Straits Times Index (STI), a key benchmark for the Singapore Exchange, ranged between 3,497.80 and 3,523.47 throughout the day. It ended the session at 3,512.67, up 16.14 points or 0.46% higher.

Sentiment was cautious as investors exercised caution ahead of the release of key US inflation data. The recent non-farm payroll data, indicating a more rapid slowdown in the labor market than anticipated, has heightened concerns about the possibility of a US recession.

While the Federal Reserve is expected to lower interest rates at its upcoming meeting, there is uncertainty regarding the magnitude of the rate cut.

Some analysts believe a larger reduction, such as 50 basis points, could signal growing concerns among policymakers, the AFP said.

In company news, Singtel rose 3.2%; Nio rose 8%; Sembcorp Industries rose 1.6%.

Shares of CSE Global plunged nearly 12% after the engineering services company's subsidiary, Hankin Environmental Systems, settled arbitration proceedings in the US with a customer for $8 million.

Silverlake Axis appointed PrimePartners Corporate Finance as its independent financial adviser to review a voluntary unconditional offer for its shares by E21 through United Overseas Bank.

Ying Li International Real Estate's shares were down nearly 5% after the property developer faced a setback as the Chongqing Higher People's Court overturned an earlier judgment from the Chongqing No. 5 Intermediate People's Court pertaining to allegations of financial disputes and operational issues.