US-Iran talks boost Asian stocks; STI up 0.22%
Progress in US-Iran peace talks eased fears of a breakdown, lifting most Asian markets. The Straits Times Index rose 0.22% or 11.31 points on Monday (June 22) to close at 5204.01 points.
The STI opened lower and traded mixed but rebounded late in the session, returning above the 5200 level.
OANDA senior market analyst Wong Suexian told Lianhe Zaobao that the STI's late recovery was mainly driven by positive news from the US-Iran talks. Both sides will continue technical negotiations and agreed on a roadmap to reach a final deal within 60 days.
Asia markets mostly stronger; Japan hits new high
In the region, Japan's Nikkei 225 closed at a record high, gaining 1.55% to 72,353.96 points, led by AI and semiconductor stocks.
According to Nikkei, the Japanese government plans to drive a total of 370 trillion yen (about $2.29 trillion) in public and private investment by 2040 in 17 sectors including AI, semiconductors, and aerospace. The news boosted expectations for growth industries, lifting semiconductor, robotics, and AI-related tech stocks.
Taiwan's market in Seoul, Shanghai, Shenzhen also rose, with gains ranging from 0.69% to 2.75%. Hong Kong and Sydney markets fell 0.65% and 0.18% respectively.
ACCM research director Glenn Yin said Monday's trading showed AI remains the strongest factor against geopolitical and high-interest rate headwinds.
Nomura equity strategist Wataru Akiyama said AI-related companies again led the rally, though the market remained highly vigilant about Iran and Middle East developments.
US PCE data in focus; market eyes inflation and rate path
Beyond geopolitics, Wong said the market is also watching the US personal consumption expenditure (PCE) data due Thursday (June 25). If core PCE reaches 3.3% or higher, the Fed's monetary policy could turn more hawkish, strengthening the dollar and potentially triggering profit-taking in Singapore stocks.
However, with the STI staying above its 20-day moving average, Wong remains bullish on its short-term outlook, with resistance at 5350 points.
Singapore market volume fell; stocks mixed
Total trading volume on Monday was 1.26 billion shares, with total value of S$2.01 billion. There were 270 rising stocks and 306 falling ones.
Among STI components, 12 rose, three flat, and 15 fell.
DFI Retail Group led the gainers, up 3.8% to US$3.82. Jardine Matheson Holdings fell the most, down 3.95% to US$62.2.
In corporate news, GuocoLand Limited 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 multicurrency medium-term note program, with proceeds to fund GuocoLand and its subsidiaries' operating expenses. The notes mature on September 30, 2030, with semi-annual interest payments on March 30 and September 30 each year, the first payment on March 30, 2027. GuocoLand shares fell 0.46% to S$2.18.
FJ Benjamin placed 42 million new shares at 0.72 cents each to two investors, including fourth-generation descendant of local TCM chain Eu Yan Sang, Yee Ming Yi. According to the company, Yee Ming Yi subscribed 14 million shares (S$100,800), while Rosslyn Leong Sou Fong subscribed the remaining 28 million shares (S$201,600). After the placement, Yee and Leong hold 1.14% and 2.28% of the company respectively. FJ Benjamin closed flat at 0.8 cents.
