US-Iran Talks Progress Boost Asian Markets; STI 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.

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.

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.

Singapore Market: Volume and Advance-Decline Summary

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.

Local Market: STI Components and Individual Stock Moves

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.

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