Singapore shares closed higher on Thursday, as investors welcomed the US Federal Reserve's decision to lower its benchmark interest rate by 25 basis points.

The Straits Times Index (STI), a key benchmark for the Singapore Exchange, ranged between 4,536.56 and 4,516.34 throughout the day. It ended the session at 4,520.83, up 8.93 points or 0.2% compared to Wednesday's close.

YZJ Shipbldg, HPH Trust USD, Pacific Century up over 2%; DBS, SIA up slightly; SIA Engineering down 1.7%; CMS down 5%.

In economic news, Singapore's labor market grew at a faster pace in the third quarter ended Sept. 30, as compared to the preceding quarter, thanks to continued economic growth, according to a report by the Singapore Ministry of Manpower on Thursday.

In corporate news, shares of Raffles Education were down nearly 4% at the close as it agreed with San Tiong as the fourth tranche subscriber for an aggregate principal amount of SG$1 million of bonds.

SIA Engineering closed nearly 2% lower, as it appointed liquidators for member's voluntary liquidation of dormant subsidiary, NexGen Network (2).

Meanwhile, Mapletree Pan Asia Commercial Trust was up nearly 1%, as its subsidiary, Festival Walk (2011), agreed to divest the Festival Walk Tower in Hong Kong for HK$1.96 billion.