US-Iran Talks Progress Boosts Asian Stocks; STI Up 0.22%

Progress in US-Iran peace talks eased market concerns about a breakdown, and most Asian stock markets moved higher. The Straits Times Index (STI) rose 0.22% or 11.31 points on Monday (June 22) to close at 5204.01 points.

The STI opened lower and traded in a volatile range before a late rebound brought it back above 5200 points.

OANDA Senior Market Analyst Wang Suiqin told Lianhe Zaobao that the late rebound was mainly driven by positive news on US-Iran talks. Both sides will continue technical-level consultations and have agreed on a roadmap for reaching a final agreement within 60 days.

In the region, Japan's Nikkei 225 hit a new closing high, rising 1.55% to 72,353.96 points, led by AI and semiconductor-related stocks.

The Nikkei reported earlier that the Japanese government plans to drive public and private investment of 370 trillion yen (about US$2.29 trillion) in 17 sectors including AI, semiconductors, and aerospace by 2040. Markets expect increased investment in growth industries, driving up stocks in semiconductors, robotics, and AI-related technology.

Stocks in Seoul, Shanghai, and Shenzhen also rose between 0.69% and 2.75%, while Hong Kong and Sydney fell 0.65% and 0.18% respectively.

ACCM Research Director Glenn Yin noted that Monday's trading showed AI remains the strongest factor against geopolitics and high interest rates.

Nomura equity strategist Wataru Akiyama said AI-related companies are again driving the market rally, but the market remains highly alert to developments in Iran and the Middle East.

Beyond geopolitics, Wang Suiqin believes the market is also watching US personal consumption expenditure (PCE) data due Thursday (25th). If core inflation reaches 3.3% or above, the Fed's monetary policy direction could turn more hawkish, strengthening the US dollar and potentially triggering profit-taking in the Singapore stock market.

However, given the STI remains above its 20-day moving average, Wang is bullish on the STI's short-term outlook, with resistance at 5350 points.

Asian Stock Performance: Nikkei Hits New High

Singapore market traded 1.26 billion shares worth S$2.01 billion on Monday, with 270 gainers and 306 losers.

Japan's Nikkei 225 rose 1.55% to 72,353.96 points, led by AI and semiconductor stocks.

Seoul, Shanghai, and Shenzhen rose between 0.69% and 2.75%, while Hong Kong fell 0.65% and Sydney 0.18%.

Singapore Local Market: STI Components Mixed

Among STI components, 12 rose, 3 were flat, and 15 fell. DFI Retail Group (DFIRG) led gains, up 3.8% to close at US$3.82. Jardine Matheson Holdings (JMH) fell the most, down 3.95% to close at US$62.2.

GuocoLand Limited's subsidiary GLL IHT Pte. Ltd completed pricing on S$110 million notes at 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 programme, used for working capital 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.

FJ Benjamin, a fashion retailer, placed 42 million new shares at S$0.0072 per share to two investors, including Eu Yan Sang fourth-generation descendant Eu Yee Ming. A company filing showed that Eu Yee Ming subscribed 14 million shares for a total of S$100,800; another investor, Rosslyn Leong Sou Fong, subscribed the remaining 28 million shares worth S$201,600. After the placement, Eu Yee Ming and Leong Sou Fong held 1.14% and 2.28% respectively. FJ Benjamin shares closed at S$0.008, unchanged.