Singapore shares closed 0.05 percent lower on Monday, after lackluster nonfarm payrolls report raised expectations that the U.S. Federal Reserve could take a more gradual approach to increasing interest rates.

U.S. nonfarm payrolls increased 138,000 in May, missing market forecast, suggesting the labor market was losing momentum despite the unemployment rate falling to a 16-year low of 4.3 percent. The number of jobs created in March and April was also reduced by 66,000 from what was previously reported.

Meanwhile, oil prices jumped after Saudi Arabia, Egypt, the United Arab Emirates (UAE) and Bahrain cut ties with Qatar on Monday. Saudi Arabia is the world's biggest exporter of crude oil. Abu Dhabi in the UAE is also a major oil exporter, while Qatar is the biggest supplier of liquefied natural gas.

"Technically, the immediate resistance for Straits Times Index is at 3,250 points followed by 3,275 points, while downside support is at 3,190 points,"said Maybank Kim Eng Research.

DBS Group Research said "While the Straits Times Index can head for 3,350 points, we think that the recent high of 3,274 points should continue to provide a near-term cap given the earnings cut from the first-quarter results season. If the 3,188 points level fails, expect a further dip to 3,160 points or lower to 3,110 points before finding support."

Singapore benchmark Straits Times Index fell 1.7 points to 3,238.31 points. Trading volume was 1.49 billion shares worth 958 million Singapore dollars. Decliners slightly outnumbered advancers 225 to 221.

Singapore Telecommunications fell 0.3 percent to 3.80 Singapore dollars. It announced it has received conditional approval from the Singapore Exchange to list NetLink Trust on the local bourse and divest its stake to less than 25 percent by April 2018. NetLink Trust designs, builds, owns and operates the infrastructure for Singapore's next generation nationwide broadband network.

Among top gainers, Jardine Matheson rose 1.1 percent to 65.89 U.S. dollars, while Venture Corporation became one of the top losers by falling 1.3 percent to 12.64 Singapore dollars. (1 U.S. dollar equals to 1.38 Singapore dollars)