SINGAPORE – Local investors dialled back concerns over a Middle East war and higher-for-longer United States interest rates to send shares inching back into the black on April 17.

The more settled mood nudged the Straits Times Index (STI) up 9.93 points or 0.3 per cent to 3,154.69 with gainers pipping losers 271 to 268 – an indication that sentiment remained weak – on trade of 1.7 billion shares worth $1.4 billion. The local banks drove the STI rebound. DBS Bank and UOB – the most heavily traded counters by value – were among the index’s best performers for the day.

DBS ended up 1.2 per cent at $35.97 and UOB closed 1.3 per cent higher at $29.61 while OCBC Bank gained 0.4 per cent to $13.57.

Asian markets were mixed. Japan, Korea, Thailand, Australia and Indonesia fell, but shares in Hong Kong, China, Taiwan, Malaysia and the Philippines rose.

The generally positive regional performance came in spite of hawkish comments on interest rates from US Federal Reserve chairman Jerome Powell.

“Given the strength of the labour market and progress on inflation so far, it is appropriate to allow restrictive policy further time to work and let the data and the evolving outlook guide us,” Mr Powell said.

That was Fed-speak for saying that rate cuts were still some way off, although many on Wall Street had already received that message after last week’s economic data.

The S&P 500 had just recorded its largest two-day fall since March 2023 but curtailed losses on April 16 to just 0.2 per cent, and the Dow broke a six-day losing streak to add 0.2 per cent, but the Nasdaq slid 0.1 per cent.

Meanwhile, the yen’s weakness may be turning into a headwind for Japanese stocks.

“Much to the dismay of central bankers across the region, Tokyo has yet to take any measures to address the yen’s decline,” said Mr Stephen Innes, managing partner at SPI Asset Management. THE BUSINESS TIMES