Chinese and U.S. teams ended trade talks in Beijing on Wednesday that lasted longer than expected, with China's Foreign Ministry spokesman Lu Kang saying that the longer-than-expected negotiations suggested the countries were serious in talks.

"Sentiment across the region is improving due to the current talks between U.S. and China, as investors are already buying back their positions in the market in expectation of positive results," said Rachelle Cruz, an analyst with AP Securities.

Philippine shares <.PSI> closed 2.8 percent higher, posting their sharpest gain since Sept. 21, 2018 and their highest close in nine months, supported by industrials.

Conglomerates SM Investments Corp and JG Summit Holdings Inc advanced 6.1 percent and 5.9 percent, respectively.

"Foreign investors are coming back to the Philippine markets since the macro concerns have partly improved and the currency has strengthened against the dollar," said Cruz.

Foreign investors have invested a net $75.53 million in equities so far this year after offloading $1.08 billion last year.

Last week, government data showed that inflation cooled more than expected in December. The market now awaits trade data for November due this week for further clues about the economy.

Singapore stocks <.STI> climbed 1.1 percent, extending gains into a fourth session. Jardine Matheson Holdings Ltd, the index's largest company by market value, rose 1.9 percent, while DBS Group Holdings Ltd gained 1.4 percent.

Vietnam shares <.VNI> advanced over 1 percent, boosted by financial and real estate stocks. Joint Stock Commercial Bank for Investment and Development of Vietnam rose 3.1 percent, while Vincom Retail JSC gained 5.3 percent.

Meanwhile, Thai shares ended marginally lower, snapping three straight sessions of gains, dragged by healthcare stocks.

Bangkok Dusit Medical Services PCL and Bumrungrad Hospital PCL slumped 8.5 percent and 9.4 percent, respectively.

(Reporting by Niyati Shetty in Bengaluru, Additional Reporting by Soumyajit Saha and Gaurav Dogra; Editing by Subhranshu Sahu)

By Niyati Shetty