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

Progress in US-Iran peace talks eased concerns of a breakdown, lifting most Asian stock markets. 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, but rebounded sharply in the final minutes, returning to the 5200 level.

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 negotiation roadmap aiming for a final deal within 60 days.

In regional markets, Japan's Nikkei 225 hit another closing high, rising 1.55% to 72,353.96 points, led by AI and semiconductor-related stocks.

According to Nikkei earlier, the Japanese government plans to drive public and private investment totaling 370 trillion yen (about US$2.29 trillion) in 17 fields including AI, semiconductors, aerospace, and space by 2040. The news boosted expectations of increased investment in growth sectors, lifting tech stocks in semiconductors, robotics, and AI.

Stock markets in Seoul, Shanghai, Shenzhen, and Taiwan also rose, with gains ranging from 0.69% to 2.75%. Hong Kong and Sydney fell 0.65% and 0.18% respectively.

ACCM Research Director Glenn Yin said Monday's trading indicated that AI remains the most powerful factor against geopolitics and high interest rates.

Nomura Securities equity strategist Wataru Akiyama said AI-related companies again drove the rally. However, the market remains highly vigilant about developments in Iran and the Middle East.

Beyond geopolitics, Wang Suiqin believed the market is also watching the US Personal Consumption Expenditures (PCE) data due on Thursday (June 25). If core inflation exceeds 3.3%, the Fed's monetary policy could turn more hawkish, strengthening the US dollar and possibly triggering profit-taking in Singapore stocks.

However, with the STI maintaining above its 20-day moving average, Wang Suiqin maintained a bullish short-term outlook with resistance at 5350 points.

Singapore Stock Market Trading and Index Component Movements

Total trading volume on the Singapore market on Monday was 1.26 billion shares, with a total turnover of S$2.01 billion. There were 270 gainers and 306 losers.

More Losers Than Gainers

Among STI components, 12 stocks rose, three were flat, and 15 fell.

DFIRG led the gainers, up 3.8% to close at US$3.82. JMH was the biggest loser, down 3.95% to close at US$62.2.

Stock News and Financing: GuocoLand Notes, Placement Updates

In corporate news, GuocoLand Limited's subsidiary GLL IHT Pte. Ltd has completed pricing of S$110 million 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 programme, with proceeds to be used for working capital. 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 closed at S$2.18 on Monday, down 0.46%.

FJ Benjamin, an apparel retailer, placed 42 million new shares at S$0.0072 each to two investors, including Yee Ming Ee, a fourth-generation descendant of local Chinese medicine chain Eu Yan Sang. The company said Yee Ming Ee subscribed 14 million shares for S$100,800. The other investor, Rosslyn Leong Sou Fong, subscribed the remaining 28 million shares for S$201,600. After the placement, Yee Ming Ee and Rosslyn Leong hold 1.14% and 2.28% of the company respectively. FJ Benjamin shares closed flat at S$0.008.

For more Singapore stock market information, please check relevant sections on the site.