Progress in US-Iran Talks Lifts Asian Stocks; STI Up 0.22%
Progress in the US-Iran peace talks eased market fears of a collapse, and most Asian stock markets rose. Singapore’s Straits Times Index (STI) climbed 0.22%, or 11.31 points, on Monday (June 22) to close at 5,204.01.
The STI opened lower and traded sideways for most of the day, but rebounded sharply near the close to return to the 5,200 level.
Wang Suiqin, senior market analyst at OANDA, told Lianhe Zaobao that the late rebound in the STI was mainly supported by positive news on progress in the US-Iran talks. The two sides will continue technical consultations and have agreed on a roadmap to reach a final deal within 60 days.
Nikkei 225 Sets Another Record Close as AI and Semiconductors Lead
In regional markets, Japan’s Nikkei 225 set another record close, rising 1.55% to 72,353.96. AI and semiconductor-related stocks led the gains.
Earlier reports from Nikkei said the Japanese government plans to drive a combined 370 trillion yen (about $2.29 trillion) of public and private investment by 2040 across 17 fields, including AI, semiconductors and aerospace. The news raised expectations for more investment in growth sectors, lifting semiconductor, robotics and AI-related tech stocks.
Shares in Seoul, Shanghai and Shenzhen also rose, with gains ranging from 0.69% to 2.75%. Hong Kong and Sydney stocks closed down 0.65% and 0.18%, respectively.
Glenn Yin, research director at ACCM, said Monday’s trading showed that AI remains the strongest factor for resisting geopolitical risks and high interest rates.
Nomura Securities equity strategist Wataru Akiyama said AI-related companies once again became the main force behind the market’s gains. Still, the market remains highly alert to developments in Iran and the Middle East.
PCE Due Soon, STI Still Seen as Bullish in the Near Term
Beyond geopolitics, Wang said markets are also watching US personal consumption expenditures (PCE) data due Thursday (25th). If core inflation comes in above 3.3%, the Fed’s policy stance may turn more hawkish, strengthening the dollar and prompting some profit-taking in Singapore stocks.
However, with the STI staying above its 20-day moving average, Wang remains bullish on the index in the near term, with resistance at 5,350.
Singapore Local Market: Gains and Stock-Specific News
Singapore stocks traded 1.26 billion shares on Monday, with a total turnover of S$2.01 billion. There were 270 gainers and 306 decliners.
Among STI constituents, 12 rose, three were unchanged and 15 fell.
Leading the 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$62.20.
On company news, GuocoLand Limited’s subsidiary GLL IHT Pte. Ltd. has completed pricing for S$110 million of notes with a 2.5% coupon, expected to be issued on June 30. The notes are part of the company’s S$3 billion multicurrency medium-term note programme, and proceeds will be used for GuocoLand and its subsidiaries’ operating expenses. The notes mature on September 30, 2030, with interest paid semi-annually on March 30 and September 30, starting March 30, 2027. GuocoLand shares fell 0.46% on Monday to close at S$2.18.
Apparel retailer FJ Benjamin placed 42 million new shares with two investors at 0.72 Singapore cents each. One of them is Eu Yan Sang fourth-generation heir Yu Yiming. The company said Yu subscribed to 14 million shares for S$108,000. The other investor, Rosslyn Leong Sou Fong, subscribed to the remaining 28 million shares for S$201,600. After the placement, Yu Yiming and Rosslyn Leong hold 1.14% and 2.28% of the company respectively. FJ Benjamin closed unchanged at 0.8 cent.
