The U.S. Commerce Department, late on Monday, granted Huawei a 90-day licence to buy U.S. goods in order to minimize disruption to customers.
"Asian markets may capitalise on the slight improvement in risk appetite overnight and attempt to reclaim some lost ground today," OCBC Bank said in a note to its clients.
However, The New York Times reported on Tuesday that the United States is considering limits to Chinese video surveillance firm Hikvision's ability to buy U.S. technology, showing that tensions still persist.
Tensions between the world's largest economies intensified last week when U.S. Commerce Department added Huawei to a trade blacklist, prompting several U.S. companies to suspend business with the world's largest telecom equipment maker.
Singapore equities rose up to 0.5%, supported by industrial stocks. Index heavyweights Jardine Matheson Holdings Ltd and Jardine Strategic Holdings Ltd climbed 3.4% and 2.7%, respectively.
The bourse declined 0.7% in the previous session after first-quarter economic growth hit a decade low as manufacturing contracted in the wake of the Sino-U.S. trade war.
OCBC in a note on Thursday said, "the recent targeting of Huawei by the US administration is also contributing to greater uncertainties and potential ripple effects for the entire regional manufacturing value-chain."
Philippine stocks added as much as 0.8% and extended gains for a fourth straight session, underpinned by financial and industrial sectors.
Ayala Corp gained 5.5% and International Container Terminal Service Inc rose 2.7%.
The Thai index advanced as much as 0.8% on Wednesday as the country's customs cleared exports fell in line with forecasts.
Official data showed exports in April contracted 2.57% from a year earlier, while imports fell 0.72% from a year ago versus a Reuters estimate of a 4.6% decline.
Meanwhile, the Jakarta index declined on Wednesday as opposition leader Prabowo Subianto refused to concede defeat and considered a legal challenge to the presidential election result.
On Tuesday, the incumbent President Joko Widodo comfortably won a second term.
Investors are also concerned whether Widodo's government can carry forward reforms amidst the politically charged environment.
Financial markets in Malaysia are closed due to a holiday.
(Reporting by Niyati Shetty; editing by Uttaresh.V)
By Niyati Shetty