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Singapore stocks fell on Wednesday, taking cues from weak Asian shares as uncertainty over U.S. policy kept many investors on the sidelines.

Asian shares hovered near two-month lows as iInvestors are looking to final tax reform legislation in the United States, where a potential U.S. government shutdown looms if Congress fails to agree on a spending package.

Investors are also awaiting catalysts that would provide reason to add to risk assets before the year draws to a close. Friday's U.S. jobs report is the next big data release on the calendar.

The Straits Times Index dropped 0.27 percent or 9 points to 3,388. It ended 1.19 percent lower on Wednesday, taking the year-to-date performance to about 18 percent.

United Overseas Bank fell 0.7 percent, Oversea-Chinese Banking lost 0.6 percent while DBS Group Holdings declined 0.5 percent.

Commodities trader Noble Group shares declined 6 percent ahead of the December 15 shareholders' meeting to approve the sale of North American oil business to Vitol.

Sembcorp Marine edged up 0.4 percent after its wholly-owned subsidiary, Sembcorp Marine Rigs & Floaters secured a US$490 million contract from Norway's Statoil Petroleum AS.

Singapore-based realty firm First Sponsor Group partnered with its two key shareholders, City Developments and Tai Tak Estates to buy the Le Méridien Frankfurt Hotel in Germany for 85 million euros (S$135.9 million). Shares of City Developments rose 2.9 percent to S$12.12 while First Sponsor's shares were unchanged at S$1.38.

CapitaLand Retail China Trust rose 1.3 percent after it got approval from the Singapore Exchange (SGX) to list new units from its upsized S$103.8 million private placement at S$1.612 apiece.

About 1.6 billion shares worth S$1.1 billion changed hands, with losers outnumbering gainers 246 to 159.