Progress in U.S.-Iran Talks Lifts Asian Stocks: STI Up 0.22%
Progress in peace talks between the United States and Iran eased market fears of a breakdown, and most Asian stocks moved higher. The Singapore Straits Times Index rose 0.22%, or 11.31 points, on Monday (June 22), closing at 5,204.01.
After opening lower, the STI traded choppily, but it rebounded sharply late in the session and returned to the 5,200-point level.
OANDA senior market analyst Wang Suiqin said in an interview that the late rebound in the STI was mainly boosted by positive news from the U.S.-Iran talks. The two sides will continue technical-level consultations and have reached consensus on a roadmap to finalize an agreement within 60 days.
Japan's Stock Market Hits Another Record: AI and Semiconductors Lead
Across the region, Japan's Nikkei 225 set another record closing high, rising 1.55% to 72,353.96 for the day. Gains were led by artificial intelligence (AI) and semiconductor-related stocks.
The Nikkei previously reported that the Japanese government plans to encourage public and private investment of 370 trillion yen (about US$2.29 trillion) by 2040 across 17 fields, including AI, semiconductors, and aerospace. The news raised expectations for more investment in growth industries, driving up semiconductor, robotics, and AI-related tech stocks.
Markets in Taipei, Seoul, Shanghai, and Shenzhen also rose, with gains ranging from 0.69% to 2.75%. Hong Kong and Sydney closed down 0.65% and 0.18%, respectively.
Markets Watch PCE and the Rate Path: A Factor in Precious Metals Sentiment
Research views hold that AI remains a strong factor in helping investors weather geopolitical risk and high interest rates.
Some market participants also noted that companies tied to AI have again become the main force driving equities higher. However, the market remains highly alert to developments in Iran and the wider Middle East.
In addition, investors are watching the U.S. Personal Consumption Expenditures (PCE) data due on Thursday (25th). If core inflation reaches 3.3% or above, the Federal Reserve's policy stance could turn more hawkish, strengthening the U.S. dollar and possibly prompting profit-taking in Singapore stocks.
At the same time, Wang Suiqin said the STI's short-term outlook remains bullish as long as it stays above the 20-day moving average, with resistance at 5,350.
Singapore's Local Market: Mixed Performance, Key Names in Focus
Trading volume in Singapore on Monday totaled 1.26 billion shares, with turnover of S$2.01 billion; 270 stocks rose and 306 fell.
Among STI constituents, 12 stocks rose, 3 were unchanged, and 15 fell.
The top gainer was DFI Retail Group (DFIRG), up 3.8% to close at US$3.82. The biggest loser was Jardine Matheson Holdings (JMH), which fell 3.95% to close at US$62.2.
On individual stocks, GLL IHT Pte. Ltd., a subsidiary of GuocoLand Limited, has completed pricing for S$110 million of notes with a 2.5% coupon and is expected to issue them on June 30. The notes are part of the company's S$3 billion multicurrency medium-term note programme, and the proceeds will be used to meet operating expenses of GuocoLand and its subsidiaries. The notes mature on September 30, 2030, with interest paid twice a year on March 30 and September 30, starting 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 with two investors at S$0.72 per share, one of whom was Yu Yiming, a fourth-generation member of local Chinese medicine chain Eu Yan Sang. The company said in a statement that Yu subscribed for 14 million shares, worth S$108,000. The other investor, Rosslyn Leong Sou Fong, subscribed for the remaining 28 million shares, worth S$201,600. After the placement, Yu Yiming and Rosslyn Leong Sou Fong will hold 1.14% and 2.28% of the company respectively.
FJ Benjamin shares closed unchanged at 0.8 cent.
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