Singapore shares closed 0.12 percent lower on Tuesday, as risk aversion remained high among investors due to persistent tension in Northeast Asia.

Maybank Kim Eng Research said sentiment continues to be weighed by the latest geopolitical tensions in Northeast Asia, but oil-linked counters could be spurred by the overnight spike in crude prices following a Turkish threat to block Kurdish oil exports and market expectations that major oil producers' output cuts could be extended.

Singapore benchmark Straits Times Index fell 3.87 points to 3,212.04 points. Trading volume was 1.54 billion shares worth 890 million Singapore dollars. Decliners outnumbered advancers 223 to 193.

Hi-P International rose 3.5 percent to 1.33 Singapore dollars. The manufacturer of Apple's products upgraded guidance for a higher on-year revenue and profit in third quarter due to better-than-expected sales and improving operational efficiency.

Mermaid Maritime jumped 6.3 percent to 13.6 Singapore cents. Its Middle East joint venture has secured a 96 million U.S. dollar contract extension for offshore inspection, repair and maintenance services with a national oil and gas company, following its initial five-year contract.

Among top gainers, SembCorp Marine rose 3.4 percent to 1.68 Singapore dollars, while Jardine Matheson became one of the top losers by falling 1.1 percent to 63.28 U.S. dollars. (1 U.S. dollar equals to 1.35 Singapore dollars)