China, Southeast Asia's biggest trading partner, and the United States will on Thursday look to work on resolving a tit-for-tat tariff war that has battered economies worldwide, with markets looking for signs of resolution during the first minister-level negotiations in months.
Equities markets in China rose after a week-long holiday.
"Price action suggests the markets are expecting, at the very least, further tariffs to be deferred," Stephen Innes, Asia Pacific market strategist, AxiTrader said in a note to clients.
Weak U.S. manufacturing data along with continued signs of weakness in the Chinese economy provide incentives for a temporary deal, Innes added.
Earlier in the day, data from a private survey showed that China's services sector grew at its slowest pace in seven months in September.
Banking and consumer sectors helped the Philippine index <.PSI> rise to its highest close in more than a week.
Conglomerate SM Investments Corp gained 2.1%, while lender BDO Unibank was up 3.3%.
Indonesian stocks <.JKSE> rose after falling about 1% in the previous session, propped up by gains in the banking and consumer sectors.
Lender Bank Mandiri (Persero) rose 2.4%, while consumer goods manufacturer Unilever Indonesia climbed 1.7%.
An index of Indonesia's 45 most liquid stocks <.JKLQ45> was up 0.75%
Singapore shares <.STI> advanced, helped by gains in the industrial sector. Jardine Matheson Holdings was up 1.6%, while Jardine Strategic Holdings rose 1.2%
(Reporting by Soumyajit Saha in Bengaluru; Editing by Susan Fenton)
By Soumyajit Saha