Singapore shares closed 1.17 percent higher on Wednesday, as investors shrugged off concerns over Chinese economic data and tensions on the Korean peninsula.

The Caixin/Markit services purchasing managers' index (PMI) for China dropped to 51.6 in June, from 52.8 in May. Investors were waiting for the minutes of the Federal Reserve's last meeting due later in the day which could provide some impetus.

Maybank Kim Eng Research said "technically, the Straits Times Index is still range-bound but could test its immediate support at 3,190 points after breaching below its 50-day moving average. Its topside resistance remains at 3,275 points."

Singapore's benchmark Straits Times Index rose 37.54 points to 3,248.71 points. Trading volume was 2.62 billion shares worth 1.15 billion Singapore dollars. Advancers outnumbered decliners 301 to 150.

CapitaLand rose 0.5 percent to 3.82 Singapore dollars. Its wholly owned serviced residence business, The Ascott Limited, is acquiring an additional 60 percent in Quest Apartment Hotels for 180 million Australian dollars. This will increase its stake in Quest from the current 20 percent to 80 percent, making Ascott the largest serviced residence provider in Australasia. The acquisition will boost Ascott's portfolio by over 11,000 units to more than 67,000 units across 507 properties and 124 cities globally.

Sanli Environmental jumped 8.2 percent to 33 Singapore cents. It announced it has secured four new contracts worth a total of 26 million Singapore dollars. The contracts consisted of a series of engineering, procurement and construction as well as operations and maintenance projects in the public and private sectors. Its current order book now stands at 125.1 million Singapore dollars.

Among the top gainers, Great Eastern Holdings rose 0.9 percent to 24.50 Singapore dollars, whereas Venture Corporation became one of the top losers by falling 0.5 percent to 11.83 Singapore dollars. (1 U.S. dollar equals to 1.32 Australian dollars and 1.38 Singapore dollars)