US-Iran talks boost Asia stocks; STI rebounds 0.22%
Progress in US-Iran peace talks eased market fears of a breakdown, lifting most Asian stock markets. The Straits Times Index (STI) rose 0.22% or 11.31 points to close at 5,204.01 on Monday (June 22).
The STI opened lower and fluctuated, but rebounded sharply in late trading, returning above the 5,200 level.
OANDA senior market analyst Wang Suiqin told Lianhe Zaobao that the late-session recovery was mainly driven by positive news from US-Iran talks. Both sides will continue technical consultations and agreed on a roadmap for reaching a final deal within 60 days.
Most Asian markets rise
In the region, Japan's Nikkei 225 hit a new closing high, rising 1.55% to 72,353.96, led by AI and semiconductor-related stocks.
Nikkei reported earlier that the Japanese government plans to stimulate public and private investment totaling 370 trillion yen (about US$2.29 trillion) in 17 fields, including AI, semiconductors, and aerospace, 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 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 hedging against geopolitical tensions and high interest rates.
Nomura equity strategist Wataru Akiyama said AI-related companies again led the rally, but markets remain highly vigilant about developments in Iran and the Middle East.
Market focuses on PCE and STI short-term trends
Besides geopolitics, Wang Suiqin noted that markets are also focused 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 stance could turn more hawkish, strengthening the dollar and potentially triggering profit-taking in Singapore stocks.
However, with the STI holding above its 20-day moving average, Wang remains bullish on near-term prospects, with resistance at 5,350 points.
Local market: more decliners than gainers
Singapore stocks saw a trading volume of 1.26 billion shares and a total turnover of S$2.01 billion on Monday, with 270 gainers and 306 losers.
Among STI components, 12 stocks rose, three were flat, and 15 fell. Leading 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.
In corporate news, GuocoLand Limited subsidiary GLL IHT priced S$110 million in 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, with proceeds used for working capital. GuocoLand shares fell 0.46% to close at S$2.18.
Retailer FJ Benjamin placed 42 million new shares at S$0.0072 each to two investors, one being Eu Yan Sang fourth-generation descendant Eu Yee Ming. Eu subscribed for 14 million shares totaling S$100,800, while another investor, Rosslyn Leong Sou Fong, subscribed for the remaining 28 million shares, totaling S$201,600. After the placement, Eu and Leong hold 1.14% and 2.28% stakes respectively. FJ Benjamin shares closed unchanged at S$0.008.
