Keppel Corp and Sembcorp Industries said they struck settlements with Sete Brasil over long-standing contracts to build drillships and rigs.

Singapore's FTSE Straits Times Index <.STI> closed 0.7% higher, after shedding 2.2% in the previous three sessions. Keppel Corp rose 1.7%, while Sembcorp Industries gained 1%.

Meanwhile, investors waited to see if the United States and China could find a way at upcoming trade talks to end their more than year-long tariff dispute.

Earlier in the day, Bloomberg reported that Chinese officials had narrowed down the list of topics they were willing to negotiate on in talks, adding to market uncertainties.

Indonesian shares <.JKSE> dropped over 1%, dragged mainly by the consumer and banking sectors.

Consumer goods maker Unilever Indonesia lost 3%, while lender Bank Rakyat Indonesia (Persero) dropped 1.3%.

A lower-than-expected consumer confidence in September contributed to the downturn in the market, said Hariyanto Wijaya, head of research at Mirae Assets Sekuritas.

Indonesia's consumer confidence index was at 121.8 in September, against 123.1 in August, according to a central bank survey out on Friday.

Thai shares advanced in thin trade, with banking stocks leading the gains. Lender Kasikornbank rose 2%.

(Reporting by Soumyajit Saha in Bengaluru; Editing by Subhranshu Sahu)

By Soumyajit Saha