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

Progress in US-Iran peace talks eased market fears of a breakdown, lifting most Asian markets. The Singapore Straits Times Index (STI) rose 0.22% or 11.31 points on Monday (June 22) to close at 5204.01.

The STI opened lower and traded in a volatile range before staging a late rebound to return to the 5200 level.

OANDA senior market analyst Wang Suiqin told Lianhe Zaobao that the late recovery was mainly driven by positive news from the US-Iran talks. Both sides will continue technical-level consultations and agreed on a negotiation roadmap to reach a final deal within 60 days.

Asian Markets Broadly Higher; Japan Hits New High

In regional markets, Japan's Nikkei 225 hit a fresh closing high, rising 1.55% to 72,353.96. The rally was led by AI and semiconductor-related stocks.

Nikkei earlier reported that the Japanese government plans to spur a total of 370 trillion yen (about US$2.29 trillion) in public and private investment across 17 fields including AI, semiconductors and aerospace by 2040. The news boosted expectations of higher investment in growth sectors, driving up semiconductor, robotics and AI-related tech stocks.

Seoul, Shanghai, Shenzhen and Taiwan markets 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 against geopolitics and high interest rates.

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

Market Eyes PCE Data; STI Still Bullish Short-Term

Beyond geopolitics, Wang Suiqin believes the market is also focused on the US Personal Consumption Expenditures (PCE) data due Thursday (June 25). If core inflation reaches 3.3% or above, the Fed's policy direction could turn more hawkish, pushing the US dollar stronger and possibly triggering profit-taking in the Singapore market.

However, given that the STI remains above its 20-day moving average, Wang is bullish on the short-term outlook, with resistance at 5350 points.

Local Market: More Losers Than Gainers; Stocks Mixed

Singapore market saw 1.26 billion shares traded on Monday, with a total turnover of S$2.01 billion. There were 270 gainers and 306 losers.

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

The top 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 Pte. Ltd. has completed pricing of S$110 million 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, with semi-annual interest payments on March 30 and September 30 each year, starting March 30, 2027.

GuocoLand shares closed on Monday down 0.46% at S$2.18.

Clothing retailer FJ Benjamin placed 42 million new shares at S$0.0072 per share to two investors, including local traditional Chinese medicine firm Eu Yan Sang's fourth-generation descendant Ee Ming.

The company said Ee Ming subscribed for 14 million shares for a total of S$100,800. The other investor, Rosslyn Leong Sou Fong (transliteration), subscribed for the remaining 28 million shares worth S$201,600. After the placement, Ee Ming and Leong held 1.14% and 2.28% of the company respectively.

FJ Benjamin shares closed flat at S$0.008.