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

Progress in US-Iran peace talks eased market fears of a breakdown, lifting most Asian stock markets. The Singapore Straits Times Index rose 0.22% or 11.31 points on Monday (June 22) to close at 5,204.01.

The STI opened lower and traded in a choppy range before staging a late-session rebound, returning to the 5,200 level.

OANDA Senior Market Analyst Wang Suiqin told Lianhe Zaobao that the STI's late rebound was mainly fueled by positive news on US-Iran talks. The two sides agreed to continue technical-level consultations and reached consensus on a roadmap for reaching a final agreement within 60 days.

Across the region, Japan's Nikkei 225 index hit another closing high, 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 drive public and private investment totaling 370 trillion yen (about $2.29 trillion) across 17 sectors including AI, semiconductors and aerospace by 2040. The news boosted expectations for increased investment in growth industries, lifting 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 fell 0.65% and 0.18% respectively.

ACCM Research Director Glenn Yin said Monday's trading showed that AI remains the strongest factor countering geopolitical risks and high interest rates.

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

Beyond geopolitics, Wang said the market is also focusing on the US personal consumption expenditures (PCE) data due Thursday (June 25). If core PCE reaches 3.3% or higher, the Fed's monetary policy direction could turn more hawkish, strengthening the dollar and possibly leading to profit-taking in Singapore stocks.

Nevertheless, with the STI staying above its 20-day moving average, Wang remains bullish on the short-term outlook, with resistance at 5,350 points.

Singapore Market: Overall Moves and Stock-Specific Developments

Singapore stocks saw a total trading volume of 1.26 billion shares and total turnover of S$2.01 billion on Monday, with 270 gainers and 306 losers.

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

The top gainer was DFI Retail Group (DFIRG), which rose 3.8% to close at US$3.82. The biggest loser was Jardine Matheson Holdings (JMH), which fell 3.95% to close at US$62.20.

In corporate news, GuocoLand Limited's subsidiary GLL IHT Pte. Ltd. priced S$110 million of 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 program, and the proceeds will be used for working capital of GuocoLand and its subsidiaries. The notes mature on September 30, 2030, paying semi-annual interest on March 30 and September 30 each year, with the first payment on March 30, 2027.

GuocoLand shares fell 0.46% to close at S$2.18 on Monday.

Apparel retailer FJ Benjamin placed 42 million new shares at 0.72 cent per share to two investors, including Eu Yi Ming, the fourth-generation descendant of local Chinese medicine chain Eu Yan Sang. The company said Eu Yi Ming 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 at 0.8 cent, unchanged.