U.S.-Iran Talks Progress Boost Asian Stocks; STI Up 0.22%

Progress in U.S.-Iran peace talks eased market concerns about a breakdown, and most Asian stocks rose. Singapore's Straits Times Index (STI) gained 0.22% or 11.31 points to close at 5,204.01 on Monday (June 22).

The STI opened lower and oscillated, but rebounded sharply in the final stretch to return to the 5,200 level.

OANDA Senior Market Analyst Wang Suqin told Lianhe Zaobao that the STI's late rebound was mainly driven by positive news on U.S.-Iran talks. The two sides will continue technical-level consultations and have agreed on a negotiation roadmap to reach a final agreement within 60 days.

In regional markets, Japan's Nikkei 225 closed at a record high, rising 1.55% to 72,353.96. AI and semiconductor-related stocks led the gains.

The Nikkei newspaper previously reported that the Japanese government plans to invest a total of 370 trillion yen (about $2.29 trillion) in 17 fields including AI, semiconductors, and aerospace by 2040. The news spurred expectations of increased investment in growth sectors, boosting semiconductor, robotics, and AI-related tech stocks.

Stock markets in Seoul, Shanghai, Shenzhen, and Taiwan 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 indicated that AI remains the most powerful factor against geopolitical and high-rate headwinds.

Nomura equity strategist Wataru Akiyama said AI-related companies again led the rally. However, markets remain highly vigilant about developments in Iran and the Middle East.

Besides geopolitics, Wang Suqin said markets are also focused on the U.S. Personal Consumption Expenditures (PCE) data due Thursday (June 25). If core inflation reaches 3.3% or above, the Fed's monetary policy direction could turn more hawkish, strengthening the dollar and potentially triggering profit-taking in Singapore stocks.

However, given that the STI remains above its 20-day moving average, Wang is bullish on the STI's short-term outlook, with resistance at 5,350 points.

Singapore Market Close Overview and Stock Performance

Singapore stocks traded 1.26 billion shares worth S$2.01 billion on Monday; 270 stocks rose and 306 fell.

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

The biggest gainer was DFI Retail Group (DFIRG), up 3.8% to close at US$3.82. The biggest loser was Jardine Matheson Holdings (JMH), down 3.95% to close at US$62.2.

Company Announcements and Market Dynamics: GuocoLand and FJ Benjamin

On individual stocks, GuocoLand Limited's subsidiary GLL IHT Pte. Ltd has priced notes totaling S$110 million with a coupon rate of 2.5%, 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 to meet operational expenses of GuocoLand and its subsidiaries. The notes mature on September 30, 2030, with interest paid semi-annually on March 30 and September 30, 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 S$0.0072 each to two investors, one of whom is Yu Yiming, the fourth-generation descendant of local traditional Chinese medicine hall Eu Yan Sang. The company said Yu Yiming subscribed for 14 million shares, totaling S$100,800. The other investor, Rosslyn Leong Sou Fong, subscribed for the remaining 28 million shares, totaling S$201,600. After the placement, Yu Yiming and Leong Sou Fong hold 1.14% and 2.28% of the company, respectively. FJ Benjamin shares closed at S$0.008, unchanged.

For more Singapore stock market information, please visit stock.zaobao.com.sg.