Trump and Xi are expected to meet on the sidelines of a G20 summit in Argentina on Nov. 30, to discuss contentious trade matters. "An agreement for talks over dinner suggests a higher level of engagement, which could result in a gentlemen's agreement not to escalate tariffs further," said Wei Liang Chang, a FX strategist with Mizuho Bank.

"(Peter) Navarro, the (U.S.) Administration's most prominent trade hawk, has been pointedly excluded for the Trump-Xi dinner. If anything, this hints at American inclination to promote a conducive environment for talks rather than ruffle feathers."

However, if the meeting does not result in any deals, the U.S. tariffs on $200 billion goods, introduced in late September, are likely to be raised to a proposed 25 percent next year from 10 percent. [MKTS/GLOB] Singapore stocks <.STI> led the gains in Southeast Asia with a 1.3 percent rise, the best since Nov. 2, after October factory data beat expectations.

The city-state's October factory output rose 4.3 percent on year, much higher than a 2.3 percent growth predicted by a Reuters survey. The growth was mainly attributable to a 15.8 percent rise in pharmaceutical production.

Gains were dominated by technology stocks, with Venture Corp Ltd gaining 5.2 percent, while Singapore Airlines Ltd climbed 2.9 percent.

Philippine shares <.PSI> closed 0.8 percent higher, with industrials accounting for more than half of the gains.

Aboitiz Equity Ventures Inc surged 11.1 percent, making it the biggest boost to the benchmark index, while SM Prime Holdings Inc gained 2.2 percent. "The (Philippine) market has been strong for the past couple of sessions. The recent fall in crude oil price might be offsetting some of the concerns with regard to inflation in the Philippines," said Charles William Ang, an associate analyst with COL Financial Inc.

Thai shares <.SETI> gained 0.5 percent, helped by financials and real estate stocks.

Siam Commercial Bank PCL rose 2.2 percent, while Airports of Thailand Pcl climbed 1.2 percent.

Meanwhile, gains in telecommunication services and basic materials helped Malaysian shares <.KLSE> close 0.4 percent higher.

Petronas Dagangan Bhd rose 2.9 percent, while Maxis Bhd added 2.3 percent.

Indonesian shares <.JKSE> gained 0.3 percent, aided by financial and material stocks. Bank Central Asia Tbk PT and Bank Mandiri (Persero) Tbk PT rose 0.5 percent and 1 percent, respectively.

(Reporting by Shreya Mariam Job; Editing by Subhranshu Sahu)

By Shreya Mariam Job