US-Iran talks progress lifts Asian stocks; STI up 0.22%
Progress in US-Iran peace talks eased concerns of 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 traded in a volatile range before rebounding sharply at the close, returning to the 5,200 level.
Senior market analyst Wang Suiqin of OANDA told Lianhe Zaobao that the late rebound was mainly driven by positive news from the US-Iran talks. Both sides will continue technical-level consultations and have reached consensus on a roadmap for a final agreement within 60 days.
Japan's Nikkei hits new high; AI and semiconductors lead gains
In regional markets, Japan's Nikkei 225 hit a new closing high, rising 1.55% to 72,353.96 points, led by AI and semiconductor-related stocks.
Nikkei reported earlier that the Japanese government plans to drive a combined public and private investment of 370 trillion yen (about US$2.29 trillion) in 17 fields 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.
Glenn Yin, Research Director at ACCM, said Monday's trading suggests AI remains the strongest defense against geopolitics and high interest rates.
Wataru Akiyama, equity strategist at Nomura Securities, said AI-related companies again led the market rally. However, markets remain highly alert to developments in Iran and the Middle East.
Market focuses on US PCE; Fed may turn more hawkish
Besides geopolitics, Wang Suiqin noted that markets are also focused on the US Personal Consumption Expenditures (PCE) data due Thursday (June 25). If core inflation reaches above 3.3%, the Fed could tilt more hawkish, strengthening the USD and potentially triggering profit-taking in Singapore stocks.
However, with the STI staying above its 20-day moving average, Wang remains bullish on the near-term outlook, with resistance at 5,350 points.
Singapore stock trading and individual stock performance
Singapore stocks had total trading volume of 1.26 billion shares and turnover of S$2.01 billion on Monday, with 270 risers and 306 decliners.
Among STI constituents, 12 gained, three were flat, and 15 fell.
Leading gains 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$62.2.
On individual stocks, GuocoLand Limited's subsidiary GLL IHT Pte. Ltd has completed pricing of 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 multicurrency medium-term note program, with proceeds used for operating expenses of GuocoLand and its subsidiaries. The notes mature on September 30, 2030, paying interest semi-annually on March 30 and September 30, 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 Yi Ming, the fourth-generation descendant of local Chinese medicine chain Eu Yan Sang. The company said in a statement that Eu Yi Ming subscribed for 14 million shares, worth S$100,800. The other investor, Rosslyn Leong Sou Fong (transliterated), subscribed for the remaining 28 million shares, worth S$201,600. After the placement, Eu Yi Ming and Leong Sou Fong hold 1.14% and 2.28% of the company respectively. FJ Benjamin shares closed at S$0.008, unchanged.
