US-Iran Talks Progress Boost Asian Stocks; STI Up 0.22%
Progress in US-Iran peace talks eased market concerns about a breakdown, lifting most Asian stock markets. The Straits Times Index (STI) rose 0.22% or 11.31 points on Monday (June 22) to close at 5,204.01.
The STI opened lower then fluctuated, but rebounded sharply in late trading, returning to the 5,200 level.
OANDA senior market analyst Wang Suiqin told media that the STI's late recovery was mainly boosted by positive news from US-Iran negotiations. Both sides will continue technical-level discussions and have agreed on a roadmap to reach a final agreement within 60 days.
Japan's Nikkei 225 Hits Record Close; AI & Semiconductor Lead
In regional markets, Japan's Nikkei 225 index closed at a record high, rising 1.55% to 72,353.96, led by AI and semiconductor-related stocks.
Nikkei earlier reported that the Japanese government plans to drive a total of 370 trillion yen (about US$2.29 trillion) in public and private investment across 17 sectors including AI, semiconductors, and aerospace by 2040. The news boosted expectations of increased investment in growth industries, 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.
ACCM Research Director Glenn Yin said Monday's trading indicates AI remains the strongest factor against geopolitical tensions and high interest rates.
Nomura equity strategist Wataru Akiyama said AI-related companies again led the market rally. However, investors remain vigilant over Iran and Middle East developments.
PCE Expectations & Technical Support Keep STI Short-Term Bullish
Besides geopolitics, Wang Suiqin noted the market is also focusing on the upcoming US Personal Consumption Expenditures (PCE) data on Thursday (June 25). If core PCE reaches 3.3% or above, the Fed's monetary policy could turn more hawkish, strengthening the US dollar and possibly triggering profit-taking in Singapore stocks.
However, with the STI staying above its 20-day moving average, Wang remains bullish on the STI's short-term outlook, with resistance at 5,350 points.
Singapore Market Performance: Volume & Stock Movers
Total trading volume on Monday was 1.26 billion shares, with a total value of S$2.01 billion. There were 270 gainers and 306 losers.
Among STI constituents, 12 stocks rose, three were flat, and 15 fell. The top gainer was DFI Retail Group (DFIRG), up 3.8% to close at US$3.82. The biggest loser was Jardine Matheson Holdings (JMH), down 3.95% to close at US$62.20.
In corporate news, GuocoLand's subsidiary GLL IHT Pte. Ltd has priced S$110 million notes at a 2.5% coupon, expected for issuance on June 30. The notes are part of the company's S$3 billion multi-currency MTN programme; proceeds will fund working capital for GuocoLand and its subsidiaries. The notes mature on September 30, 2030, with semi-annual interest payments on March 30 and September 30, starting March 30, 2027. GuocoLand shares fell 0.46% to S$2.18.
FJ Benjamin placed 42 million new shares at S$0.0072 each to two investors, including Eu Yan Sang fourth-generation scion Eu Yee Ming. The company said Eu Yee Ming subscribed for 14 million shares, totaling S$100,800, while another investor Neo Siew Fong (transliteration) subscribed for the remaining 28 million shares, worth S$201,600. After placement, Eu Yee Ming and Neo hold 1.14% and 2.28% respectively. FJ Benjamin shares closed at S$0.008, unchanged.
