Stocks in Singapore closed 0.36 percent lower on Monday, as U.S. talks aimed at raising the country's debt limit fell apart, raising the spectre of a default.

With just over a week to go before the U.S. runs out of money to repay its debt, President Barack Obama and his Republican opponents remain deadlocked on talks over a deficit-cutting budget that will allow for more borrowing.

The Straits Times Index fell 11.40 points to end at 3,171.55.

Volume was 1.14 billion shares.

Losers led gainers 312 to 167.

Singapore Airlines was down 0.68 percent at S$14.63 and Singapore Telecommunications eased 0.6 percent to S$3.30.

City Developments declined 1.7 percent to S$10.74. CapitaLand was down 1.0 percent at S$2.92 while CapitaMalls Asia slipped 0.7 percent to S$1.44.

Olam International slid 0.8 percent to S$2.63, while Golden Agri-Resources declined 0.7 percent to S$0.725.

Midas Holdings fell 3.9 percent to S$0.61, while Tiger Airways rose 3.0 percent to S$1.185.