US-Iran Talks Progress Boost Asian Stocks; STI Rebounds 0.22%

Progress in peace talks between the United States and Iran eased market concerns about a breakdown in negotiations, boosting most Asian stock markets. The Straits Times Index (STI) rose 0.22% or 11.31 points to close at 5204.01 on Monday June 22.

The STI opened lower before stabilizing, oscillating throughout the day, then rebounded in the late afternoon session to regain the 5200 level.

OANDA Senior Market Analyst Wang Suiqin told Lianhe Zaobao that the rebound was mainly driven by positive news from the US-Iran talks. Both sides will continue technical-level consultations and reached consensus on a negotiation roadmap to reach a final agreement within 60 days.

Regional Markets Divided; AI and Semiconductor Stocks Lead Gains

In regional markets, Japan's Nikkei 225 hit another record close, rising 1.55% to 72353.96, led by stocks related to artificial intelligence (AI) and semiconductors.

Earlier, Nikkei reported that the Japanese government plans to drive a combined public-private investment of 370 trillion yen (about S$2.29 trillion) in 17 fields, including AI, semiconductors, and aerospace, by 2040. The news sparked expectations of increased investment in growth sectors, further lifting semiconductor, robotics, and AI-related tech stocks.

Stock markets in Seoul, Shanghai, and Shenzhen also rose, with gains ranging from 0.69% to 2.75%; while Hong Kong and Sydney fell 0.65% and 0.18% respectively.

ACCM Research Director Glenn Yin said Monday's trading indicated that AI remains the strongest factor resisting geopolitical and high-interest-rate headwinds. Nomura Securities equity strategist Wataru Akiyama also noted that AI-related companies once again drove the market rally, but the market remained highly alert to Iran and Middle East developments.

Focus on PCE Data; STI Short-Term Outlook Bullish

Besides geopolitical factors, Wang Suiqin believes the market will also focus on the US Personal Consumption Expenditures (PCE) data due on Thursday (25th). If core inflation reaches 3.3% or above, the Fed's monetary policy direction may turn more hawkish, strengthening the US dollar and possibly triggering profit-taking in Singapore stocks.

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

Singapore Market Volume Increases; Stocks Mixed

Total trading volume on the Singapore market Monday was 1.26 billion shares, with a total transaction value of S$2.01 billion; there were 270 gainers and 306 losers.

Among STI constituent stocks, 12 rose, three were flat, and 15 fell. DFI Retail Group (DFIRG) led gains, closing up 3.8% at US$3.82; Jardine Matheson Holdings (JMH) was the biggest loser, falling 3.95% to close at US$62.2.

In corporate news, GuocoLand Limited subsidiary GLL IHT Pte. Ltd. has 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 programme, with proceeds to be used for operating expenses of GuocoLand and its subsidiaries. The notes mature on September 30, 2030, paying interest semi-annually on March 30 and September 30 each year, with the first payment on March 30, 2027. GuocoLand's shares fell 0.46% to close at S$2.18 on Monday.

Fashion retailer FJ Benjamin placed 42 million new shares at S$0.0072 per share to two investors, including Eu Yan Sang fourth-generation descendant Eu Yee Ming. The company said in a statement that Eu Yee Ming 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 placement, Eu and Leong hold 1.14% and 2.28% of the company respectively. FJ Benjamin's shares closed at S$0.008, unchanged.