US-Iran Talks Progress Lifts Asian Stocks; STI Up 0.22%
Progress in US-Iran peace talks eased concerns over a breakdown, boosting most Asian stock markets. The Straits Times Index (STI) rose 0.22% or 11.31 points on Monday (June 22) to close at 5204.01.
The STI opened lower and traded volatile before rebounding in late trading to reclaim the 5200 level.
OANDA senior market analyst Wang Suiqin told Lianhe Zaobao that the late rebound was mainly driven by positive news from US-Iran talks. Both sides will continue technical consultations and agreed on a roadmap to reach a final agreement within 60 days.
In regional markets, Japan's Nikkei 225 hit a new closing high, rising 1.55% to 72,353.96. Gains were led by AI and semiconductor-related stocks.
Nikkei reported earlier that the Japanese government plans to drive public and private investment totaling 370 trillion yen (about US$2.29 trillion) in 17 areas including AI, semiconductors, and aerospace by 2040. The news fueled expectations of increased investment in growth sectors, lifting semiconductor, robotics, and AI-related tech stocks.
Stock markets in Seoul, Shanghai, Shenzhen, and Taiwan also rose, with gains ranging from 0.69% to 2.75%. Hong Kong and Sydney fell 0.65% and 0.18% respectively.
Glenn Yin, Head of Research at ACCM, said Monday's trading showed that AI remains the strongest factor against geopolitical risks and high interest rates.
Wataru Akiyama, equity strategist at Nomura Securities, said AI-related companies again led the market rally. However, the market remains highly vigilant about developments in Iran and the Middle East.
Besides geopolitics, Wang noted that the market is also focused on the US Personal Consumption Expenditures (PCE) data due Thursday (June 25). If core inflation reaches 3.3% or above, the Fed's monetary policy direction could become more hawkish, strengthening the US dollar and potentially triggering profit-taking in Singapore stocks.
However, given that the STI remains above its 20-day moving average, Wang is bullish on its short-term outlook, with resistance at 5350 points.
Singapore Market Overview and Stock Moves
Singapore stocks saw a total trading volume of 1.26 billion shares on Monday, with a total turnover of S$2.01 billion. Gainers numbered 270, losers 306.
Among STI constituents, 12 rose, three were flat, and 15 fell.
Top gainer was DFI Retail Group (DFIRG), up 3.8% to close at US$3.82. Biggest loser was Jardine Matheson Holdings (JMH), down 3.95% to close at US$62.2.
In corporate news, GuocoLand Limited subsidiary GLL IHT Pte. Ltd. finalized pricing for S$110 million in notes with a 2.5% coupon, expected to be issued on June 30.
The notes are part of the company's S$3 billion multi-currency MTN programme, with proceeds used for GuocoLand's and its subsidiaries' operating expenses. The notes mature on September 30, 2030, paying semi-annual interest on March 30 and September 30 each year, with the first payment on March 30, 2027.
GuocoLand shares fell 0.46% to close at S$2.18 on Monday.
Fashion retailer FJ Benjamin placed 42 million new shares at S$0.0072 per share to two investors, including Eu Yan Sang fourth-generation descendant Eu Yee Ming.
The company said Eu subscribed for 14 million shares for a total of S$100,800. Another investor, Rosslyn Leong Sou Fong, subscribed for the remaining 28 million shares, valued at S$201,600. After the placement, Eu and Leong hold 1.14% and 2.28% of the company respectively.
FJ Benjamin shares closed at S$0.008, unchanged.
