US-Iran talks progress boosts Asian stocks, STI up 0.22%

Progress in US-Iran peace talks eased concerns about a breakdown in negotiations, and most Asian stock markets rose. Singapore's Straits Times Index rose 0.22% or 11.31 points on Monday (June 22) to close at 5204.01 points.

The STI opened lower and then maintained oscillating movement, but rebounded suddenly in late trading, returning to the 5200 level.

OANDA senior market analyst Wang Suiqin told Lianhe Zaobao that the STI's late rebound was mainly boosted by positive news on US-Iran negotiations. The two sides will continue technical-level consultations and reached a consensus on a negotiation roadmap for a final agreement within 60 days.

In regional stock markets, Japan's Nikkei 225 hit another record closing high, up 1.55% to 72,353.96 points. Leading the gains were AI and semiconductor-related stocks.

Earlier, Nikkei newspaper reported that the Japanese government plans to promote a total investment of ¥370 trillion (about US$2.29 trillion) in 17 fields including AI, semiconductors, aerospace, and others, from public and private sectors by 2040. After the news, market expectations of increased investment in growth industries drove up tech stocks related to semiconductors, robotics, and AI.

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

ACCM research director Glenn Yin said Monday's market trading showed that AI remains the strongest factor against geopolitics and high interest rates.

Nomura stock strategist Wataru Akiyama said AI-related companies again became the main force driving stock market gains. However, the market remains highly vigilant about developments in Iran and the Middle East.

In addition to geopolitical situations, Wang Suiqin believes the market is also focused on the US Personal Consumption Expenditures (PCE) data to be released on Thursday (June 25). If core PCE reaches above 3.3%, the Fed's monetary policy direction may turn more hawkish, pushing the US dollar stronger, and the Singapore stock market may see profit-taking by investors.

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

STI trading overview and local stock performance

Monday's trading volume on the Singapore stock market was 1.26 billion shares, with total turnover of S$2.01 billion; 270 stocks rose, 306 fell.

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

Leading gainer was DFI Retail Group (DFIRG), up 3.8% to close at US$3.82. Biggest loser was Jardine Matheson Holdings (JMH), down 3.95% to close at US$62.2.

Stock moves: GuocoLand notes pricing and FJ Benjamin placement

In individual stock news, GuocoLand Limited's subsidiary GLL IHT Pte. Ltd has priced notes totaling S$110 million with a coupon of 2.5%, 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 to meet GuocoLand and its subsidiaries' operating expenses. The notes mature on September 30, 2030, with semi-annual interest payments on March 30 and September 30 each year, first payment on March 30, 2027. GuocoLand shares fell 0.46% to close at S$2.18.

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