US-Iran Talks Progress Lifts Asian Stocks; Singapore STI Closes Up 0.22%
Progress in US-Iran peace talks eased market fears of a breakdown, and most Asian stock markets rose. Singapore's Straits Times Index rose 0.22%, or 11.31 points, on Monday (June 22), closing at 5,204.01.
The STI fell at the open and then moved sideways, but it suddenly rebounded late in the day and climbed back above the 5,200 level.
OANDA senior market analyst Wang Suiqin told Lianhe Zaobao that the late rebound in the STI was mainly lifted by positive news on US-Iran talks. The two sides will continue technical-level consultations and have agreed on a roadmap for reaching a final deal within 60 days.
In regional markets, Japan's Nikkei 225 closed at another record high, rising 1.55% to 72,353.96 points. The biggest gainers were stocks related to artificial intelligence (AI) and semiconductors.
Earlier, Nikkei reported that the Japanese government plans to drive public and private investment of 370 trillion yen (about US$229 billion) by 2040 across 17 fields including AI, semiconductors and aerospace. The news led markets to expect more investment in growth sectors, pushing up semiconductors, robotics and AI-related tech stocks.
Stocks in Taiwan also rose in Seoul, Shanghai and Shenzhen, with gains ranging from 0.69% to 2.75%. Hong Kong and Sydney stocks closed down 0.65% and 0.18%, respectively.
Glenn Yin, research director at ACCM, said Monday's market action showed that AI remains the most powerful factor for defending against geopolitics and high interest rates.
Nomura Securities equity strategist Wataru Akiyama said AI-related companies once again became the main force behind the market's gains. However, the market remains highly alert to developments in Iran and the Middle East.
Beyond geopolitics, Wang Suiqin said the market is also watching Thursday's (25th) US Personal Consumption Expenditures (PCE) report. If core inflation reaches 3.3% or above, the Federal Reserve's policy stance may turn more hawkish, which could strengthen the US dollar and prompt profit-taking in Singapore stocks.
Still, given that the STI remains above its 20-day moving average, Wang keeps a bullish short-term view on the STI, with resistance at 5,350 points.
Asian markets recover together: Nikkei hits record close
Japan's Nikkei 225 rose 1.55% to 72,353.96 points, led by AI and semiconductor names.
The Japanese government's plan to invest a combined 370 trillion yen (about US$229 billion) by 2040 in 17 sectors including AI, semiconductors and aerospace lifted semiconductor, robotics and AI-related tech stocks.
Markets focus on PCE and AI: geopolitics still a variable
ACCM research director Glenn Yin said AI remains the strongest factor against geopolitics and high interest rates.
Nomura Securities strategist Wataru Akiyama said AI-related firms once again led the market higher, but investors remain cautious about Iran and the Middle East.
Wang Suiqin noted that the market will focus on Thursday's US PCE data; if core inflation is above 3.3%, Fed policy could turn more hawkish and push the dollar higher, potentially triggering profit-taking in Singapore stocks.
Singapore market breadth and stock movers
Singapore stocks traded 1.26 billion shares worth S$2.01 billion on Monday; 270 counters rose and 306 fell.
Among STI constituents, 12 rose, 3 were unchanged and 15 fell. The top gainer was DFI Retail Group (DFIRG), which rose 3.8% to close at US$3.82. The biggest loser was Jardine Matheson Holdings (JMH), which fell 3.95% to close at US$62.20.
In company news, GuocoLand Limited subsidiary GLL IHT Pte. Ltd completed pricing for notes with an aggregate principal of S$110 million and 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 meet operating expenses of GuocoLand and its subsidiaries. The notes mature on September 30, 2030, with interest paid semi-annually on March 30 and September 30 each year, starting 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 descendant of local Chinese medicine chain Eu Yan Sang. The company said Yu subscribed for 14 million shares worth S$108,000, while 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 held 1.14% and 2.28% of the company, respectively. FJ Benjamin closed unchanged at 0.8 cent.
