Bangko Sentral ng Pilipinas governor Benjamin Diokno said another rate cut is still possible during the last policy meeting of the central bank in December, local media reported on Tuesday.

The country's central bank has cut interest rates by a total of 75 basis points this year but left its powder dry at the policy meeting held earlier this month.

The possibility of another interest rate cut is underpinning the positive sentiment in the market, Rachelle Cruz, an analyst at AP Securities, said.

"We're also seeing some bargain hunters picking up stocks which were sold down," Cruz added.

The country's benchmark index jumped 0.5% after closing at its lowest in almost seven weeks on Monday.

Index heavyweights SM Prime Holdings and SM Investments Corp gained 1.3% each.

Singapore stocks slipped 0.3%, with Jardine Matheson Holdings and Jardine Strategic Holdings falling 2.3% and 0.6%.

Data on the city-state's manufacturing output - a key driver of growth - for October is due later in the day.

Most other Southeast Asian markets were, however, little changed as investors shrugged off news of a phone call between top Chinese and U.S. trade negotiators.

Scepticism and weariness due to constant and often conflicting headlines on U.S.-China trade negotiations have prompted investors to be cautious, limiting their response to new developments.

Malaysian stocks edged higher, with electricity utility Tenaga Nasional advancing 1%.

Shares in Indonesia and Thailand were flat.

(This story refiles to correct the link for the Thai SET index in the last paragraph)

By Arundhati Dutta