US-Iran Talks Progress Boost Asian Stocks; STI Ends Up 0.22%
Progress in US-Iran peace talks eased fears of a breakdown, lifting most Asian stocks. Singapore's Straits Times Index rose 0.22% or 11.31 points on Monday (June 22) to close at 5204.01.
The STI opened lower and traded choppily, but rebounded in late trading to return to the 5200 level.
OANDA senior market analyst Wang Suiqin told Lianhe Zaobao that the recovery was mainly driven by positive news from the US-Iran talks. Both sides will continue technical discussions and agreed on a roadmap to reach a final agreement within 60 days.
In regional markets, Japan's Nikkei 225 hit another closing high, rising 1.55% to 72353.96, led by AI and semiconductor stocks.
Nikkei earlier reported that the Japanese government plans to invest a total of 370 trillion yen (about $2.29 trillion) in 17 fields including AI, semiconductors, and aerospace through public-private collaboration by 2040. This boosted expectations for growth sectors, driving semiconductor, robotics, and AI-related tech stocks.
Stock markets in Seoul, Shanghai, Shenzhen and Taiwan also rose, with gains between 0.69% and 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 the most powerful factor against geopolitical risks and high interest rates.
Nomura equity strategist Wataru Akiyama said AI-related companies are again the main drivers. However, the market remains highly vigilant about developments in Iran and the Middle East.
Beyond geopolitics, Wang Suiqin noted the market is also focused on the US Personal Consumption Expenditures (PCE) data due Thursday. If core inflation exceeds 3.3%, the Fed's policy direction could become more hawkish, strengthening the 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 the STI's short-term outlook, with resistance at 5350.
Singapore stocks mid-session and individual stock performance
Singapore stocks traded 1.26 billion shares worth S$2.01 billion on Monday, with 270 gainers and 306 losers.
Local stocks saw more decliners than advancers
Among STI constituents, 12 rose, three flat, and 15 fell.
DFI Retail Group led gains, up 3.8% to close at US$3.82. The biggest loser was Jardine Matheson Holdings, down 3.95% to US$62.2.
Company news: GuocoLand notes and FJ Benjamin placement
In corporate news, GuocoLand's subsidiary GLL IHT Pte. Ltd has priced 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 medium-term note program. Proceeds will be used for operating expenses of 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 fell 0.46% to S$2.18 on Monday.
Clothing retailer FJ Benjamin placed 42 million new shares at S$0.0072 each to two investors, including Eu Yi Ming, the fourth-generation descendant of traditional Chinese medicine shop Eu Yan Sang.
According to the company, Eu Yi Ming subscribed for 14 million shares worth S$100,800. Another investor, Rosslyn Leong Sou Fong, purchased the remaining 28 million shares worth S$201,600. After the placement, Eu and Leong hold 1.14% and 2.28% of the company respectively.
FJ Benjamin shares closed flat at S$0.008.
