Progress in U.S.-Iran talks lifts Asian stocks; Singapore STI up 0.22%
Progress in peace talks between the United States and Iran eased fears of a breakdown and lifted most Asian stock markets. Singapore’s Straits Times Index rose 0.22%, or 11.31 points, to close at 5,204.01 on Monday (June 22).
The STI fell at the open and traded choppily, but rebounded sharply near the close to return to the 5,200 level.
OANDA senior market analyst Wang Suiqin told Lianhe Zaobao that the late rebound in the STI was mainly driven by news of positive progress in the U.S.-Iran talks. The two sides will continue technical consultations and have agreed on a roadmap for reaching a final agreement within 60 days.
Japan and regional markets: AI and semiconductors drive the rebound
In regional markets, Japan’s Nikkei 225 set another record closing high, rising 1.55% to 72,353.96 points. Leading the gains were artificial intelligence (AI) and semiconductor-related stocks.
Earlier, the Nihon Keizai Shimbun reported that the Japanese government plans by 2040 to push combined public and private investment of 370 trillion yen (about US$229 billion) into 17 fields, including AI, semiconductors and aerospace. After the news, markets expected greater investment in growth industries, lifting semiconductor, robotics and AI-related tech stocks.
Markets in 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.
ACCM research director Glenn Yin said Monday’s trading showed that AI remains the strongest factor cushioning geopolitical tensions and high interest rates.
Nomura Securities equity strategist Watanabe Akiyama said AI-linked companies once again became the main driver of the market’s rise. Still, the market remains highly alert to developments in Iran and the Middle East.
Focus on PCE and the risk of a stronger dollar; STI short-term outlook bullish
Beyond geopolitics, Wang Suiqin said investors are also watching U.S. personal consumption expenditures (PCE) data due Thursday (25th). If core inflation rises above 3.3%, the Federal Reserve could adopt a more hawkish stance, pushing up the U.S. dollar and potentially leading Singapore investors to take profits.
However, as the STI remains above its 20-day moving average, Wang Suiqin stays bullish on its short-term outlook, with resistance at 5,350 points.
Singapore market turnover and stock performance
Singapore stocks traded 1.26 billion shares on Monday, with turnover of S$2.01 billion; 270 stocks rose and 306 fell.
Among STI constituents, 12 rose, three were unchanged and 15 declined.
Leading the gains 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$62.20.
On individual stocks, GuocoLand Limited subsidiary GLL IHT Pte. Ltd. has priced S$110 million of notes at a 2.5% coupon, with issuance expected 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 cover operating expenses for GuocoLand and its subsidiaries. The notes mature on September 30, 2030 and pay interest every six months on March 30 and September 30 each year, with the first payment date on March 30, 2027. GuocoLand shares fell 0.46% on Monday to close at S$2.18.
Apparel retailer FJ Benjamin placed 42 million new shares at 0.72 cent each to two investors, one of whom is Yu Yiming, a fourth-generation heir of local TCM chain Eu Yan Sang. The company said Yu 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, Yu Yiming and Rosslyn Leong Sou Fong hold 1.14% and 2.28% of the company respectively. FJ Benjamin closed at 0.8 cent, unchanged.
