US-Iran Talks Progress Boost Asian Stocks: Singapore STI Up 0.22%
Progress in US-Iran peace talks eased concerns about a breakdown, lifting most Asian stocks. The Straits Times Index (STI) rose 0.22% or 11.31 points on Monday (June 22) to close at 5,204.01 points.
The STI opened lower and fluctuated, but rebounded in late trade, returning to the 5,200 level.
OANDA Senior Market Analyst Wang Suiqin told Lianhe Zaobao that the STI's late rebound was mainly due to positive news on US-Iran talks. Both sides will continue technical-level consultations and agreed on a roadmap to reach a final agreement within 60 days.
In the region, Japan's Nikkei 225 index hit another record closing high, up 1.55% to 72,353.96 points, led by AI and semiconductor-related stocks.
The Nikkei had earlier reported 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 boosted 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.
ACCM Research Director Glenn Yin said Monday's trading showed that AI remains a key hedge against geopolitical tensions and high interest rates.
Nomura equity strategist Wataru Akiyama noted that AI-related companies again led the rally. However, the market remains highly alert to developments in Iran and the Middle East.
Besides geopolitics, Wang Suiqin said markets are also focused on the US Personal Consumption Expenditure (PCE) data due on Thursday (June 25). If core inflation hits 3.3% or above, the Fed's policy direction could turn more hawkish, pushing the dollar stronger and potentially triggering profit-taking in Singapore stocks.
Technically, with the STI holding above its 20-day moving average, Wang remains bullish on its short-term outlook, with resistance at 5,350 points.
Singapore Stock Market Trading Overview
On Monday, Singapore's stock market saw a total of 1.26 billion shares traded, with a total value of S$2.01 billion; 270 stocks rose and 306 fell.
Local Market: STI Component Movement
Among STI components, 12 rose, three were flat, and 15 fell. DFI Retail Group (DFIRG) led gains, up 3.8% to close at US$3.82; Jardine Matheson Holdings (JMH) was the biggest loser, down 3.95% to close at US$62.2.
Stock-Specific Updates & Investment Clues
GuocoLand Limited's subsidiary GLL IHT Pte. Ltd has priced notes totaling S$110 million with a coupon of 2.5%, expected to be issued on June 30. The notes are part of the company's S$3 billion multi-currency medium-term note program, with proceeds used to fund operating expenses for GuocoLand and its subsidiaries. The notes mature on September 30, 2030, with semi-annual interest payments on March 30 and September 30 each year, starting March 30, 2027. GuocoLand shares closed at S$2.18 on Monday, down 0.46%.
Apparel retailer FJ Benjamin placed 42 million new shares at S$0.0072 per share to two investors, including Eu Yan Sang's fourth-generation descendant Eu Yee Ming. The company said in a filing that Eu Yee Ming subscribed 14 million shares for S$100,800; another investor Rosslyn Leong Sou Fong subscribed the remaining 28 million shares for S$201,600. After completion, Eu Yee Ming and Rosslyn Leong Sou Fong hold 1.14% and 2.28% stakes respectively. FJ Benjamin shares closed flat at S$0.008.
