SINGAPORE – News of Israel’s strikes against Iran rattled investors here and across the region and sent markets into negative territory on April 19.

The local damage was relatively contained with the Straits Times Index (STI) down just 11.15 points, or 0.4 per cent, to 3,176.51 points, but 1.3 per cent lower for the week, the third consecutive week of decline. Losers outpaced gainers 372 to 244 on the broader market, with 1.8 billion shares worth $1.4 billion changing hands.

Most regional indexes were in the red with Taiwan’s TSEC taking the biggest hit, down 3.8 per cent.

The Nikkei 225 in Tokyo was not far behind, falling 2.7 per cent, while the ASX in Sydney plunged as much as 2 per cent before rallying to close down 1 per cent.

The declines follow another gloomy session on Wall Street as investors factor in the prospect of no interest rate cuts in 2024.

The S&P 500 lost 0.2 per cent – its fifth straight daily decline – while the Nasdaq slid 0.5 per cent. Both are off almost 5 per cent in April. The Dow Jones Industrial Average inched up 0.1 per cent, but its 5.1 per cent fall in April has wiped out nearly all of its gains in 2024.

The sell-off follows two consecutive days of moderately positive sentiment in Asia, as investors appeared to have priced in a delay in US rate cuts and an escalation of Middle East tensions.

Reports that Israel had attacked Iran may have reignited concerns.

“If the situation escalates further, it could continue to weigh on global and regional markets,” said Mr Vasu Menon, managing director, investment strategy, at OCBC Bank.

“In the short term, investors will have to be braced for more volatility and possibly more downside for markets depending on how developments... play out.”

The STI’s biggest loser for the week was DFI Retail Group, down 11.5 per cent, while UOB was the biggest winner, up 1.2 per cent. THE BUSINESS TIMES