US-Iran Talks Progress Boost Asian Stocks: STI Up 0.22% Eyeing PCE
Progress in US-Iran peace talks eased market concerns about breakdown, lifting most Asian stocks. The Straits Times Index (STI) rose 0.22% or 11.31 points on Monday (22 June) to close at 5204.01 points.
The STI opened lower and fluctuated, but rebounded in the final minutes to return 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. The two sides will continue technical consultations and have agreed on a roadmap to reach a final agreement within 60 days.
In regional markets, Japan's Nikkei 225 hit another record close, rising 1.55% to 72,353.96 points, led by artificial intelligence (AI) and semiconductor-related stocks.
Earlier, Nikkei reported that the Japanese government plans to jointly invest JPY 370 trillion (about USD 2.29 trillion) in 17 areas including AI, semiconductors, and aerospace by 2040. The news spurred expectations of increased investment in growth industries, driving up semiconductor, robotics, and AI-related tech stocks.
Stock markets in Seoul, Shanghai, Shenzhen, and Taiwan also rose, with gains between 0.69% and 2.75%. Hong Kong and Sydney closed down 0.65% and 0.18% respectively.
ACCM Research Director Glenn Yin said Monday's trading showed that AI remains the strongest factor against geopolitical and high interest rate headwinds.
Nomura equity strategist Wataru Akiyama said AI-related companies again became the main driver of the stock market rally. However, the market remains highly vigilant about developments in Iran and the Middle East.
Apart from geopolitics, Wang Suiqin said the market is also focused on the upcoming US Personal Consumption Expenditures (PCE) data due Thursday (25 June). If core inflation exceeds 3.3%, the Fed's policy direction may turn more hawkish, strengthening the US dollar and leading to profit-taking in Singapore equities.
However, given that the STI is above its 20-day moving average, Wang remains bullish on the short-term outlook, with resistance at 5350 points.
Asian Stock Trading Overview and Local Individual Stock Performance
Singapore stocks had a total trading volume of 1.26 billion shares and total turnover of SGD 2.01 billion on Monday; 270 stocks rose, 306 fell.
Local Market: More Declines Than Rises
Among STI constituents, 12 rose, 3 were flat, and 15 fell.
DFI Retail Group led gainers, up 3.8% to USD 3.82. The biggest decliner was Jardine Matheson Holdings, down 3.95% to USD 62.2.
In individual stock news, GuocoLand Limited subsidiary GLL IHT Pte. Ltd has completed pricing for a total SGD 110 million note with a coupon of 2.5%, expected to be issued on 30 June.
The notes are part of the company's SGD 3 billion multicurrency medium-term note programme, and proceeds will be used for operating expenses of GuocoLand and its subsidiaries. The notes mature on 30 September 2030, with semi-annual interest payments on 30 March and 30 September each year, first payment due 30 March 2027.
GuocoLand shares fell 0.46% to SGD 2.18.
Apparel retailer FJ Benjamin placed 42 million new shares at SGD 0.072 each to two investors, one of whom is Yu Yiming, the fourth-generation descendant of local Chinese medicine chain Eu Yan Sang.
The company said in a statement that Yu Yiming subscribed for 14 million shares, totaling SGD 100,800. Another investor, Rosslyn Leong Sou Fong, subscribed for the remaining 28 million shares, worth SGD 201,600. After the placement, Yu Yiming and Rosslyn Leong hold 1.14% and 2.28% of the company respectively.
FJ Benjamin shares closed at SGD 0.008, unchanged.
(More Singapore stock information available in related sections on site.)
