US-Iran Talks Progress Boosts Asian Stocks: STI Up 0.22%
Progress in peace talks between the US and Iran eased market concerns about a breakdown, sending most Asian stocks higher. The Straits Times Index on Monday (June 22) rose 0.22% or 11.31 points to close at 5,204.01 points.
The STI opened lower and traded in a volatile range before rebounding late in the session, returning to the 5,200 level.
OANDA Senior Market Analyst Wang Suqing said the late rebound in the STI was mainly driven by positive news on US-Iran talks. The two sides will continue technical-level consultations and agreed on a negotiation roadmap to reach a final deal within 60 days.
In regional markets, Japan's Nikkei 225 closed at a new record high, gaining 1.55% to 72,353.96 points. Gains were led by stocks related to artificial intelligence (AI) and semiconductors.
Nikkei earlier reported that the Japanese government plans to drive public and private investment of 370 trillion yen (about US$2.29 trillion) in AI, semiconductors, aerospace and 14 other fields by 2040. The news lifted expectations of increased investment in growth sectors, boosting technology stocks in semiconductors, robotics and AI.
Taiwan's stock market in Seoul, Shanghai, Shenzhen also rose, with gains between 0.69% and 2.75%. Hong Kong and Sydney markets fell 0.65% and 0.18% respectively.
ACCM Research Director Glenn Yin believes Monday's market action shows that AI remains the strongest factor resisting geopolitical and high-interest rate headwinds.
Nomura equity strategist Wataru Akiyama said AI-related companies again led market gains. However, markets remain highly vigilant about developments in Iran and the Middle East situation.
Besides geopolitics, Wang noted that markets are also watching the US personal consumption expenditure (PCE) data due Thursday (June 25). If core PCE reaches above 3.3%, the Fed's monetary policy direction could turn more hawkish, pushing the US dollar stronger and possibly leading to profit-taking in Singapore stocks.
On the short-term outlook for the STI, Wang believes the index remains above its 20-day moving average, with a short-term bullish view and resistance at 5,350 points.
Total trading volume on the Singapore market Monday was 1.26 billion shares, with total turnover of S$2.01 billion; 270 stocks rose, 306 fell.
Local Market: More Losers Than Gainers
Among STI component stocks, 12 rose, three were flat, and 15 fell.
The biggest gainer was DFI Retail Group, up 3.8% to close at US$3.82. The biggest loser was Jardine Matheson Holdings, down 3.95% to close at US$62.2.
In individual stock news, GuocoLand Limited's subsidiary GLL IHT Pte. Ltd has completed pricing of notes worth 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, and the funds raised will be used to meet operating expenses of GuocoLand and its subsidiaries. The notes mature on September 30, 2030, paying interest semi-annually on March 30 and September 30 each year, with the first payment on March 30, 2027.
GuocoLand shares fell 0.46% on Monday to close at S$2.18.
Fashion retailer FJ Benjamin placed 42 million new shares at S$0.0072 each to two investors, one of whom is Eu Yan Sang fourth-generation descendant Eu Yee Ming. The company said in a statement that Eu subscribed for 14 million shares worth S$100,800. The other investor, Rosslyn Leong Sou Fong, subscribed for 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 unchanged at S$0.008.
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