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

Progress in US-Iran peace talks eased concerns over a breakdown, lifting most Asian markets. Singapore's Straits Times Index (STI) rose 0.22% or 11.31 points on Monday (June 22) to close at 5,204.01 points.

The STI opened lower and fluctuated but rebounded late in the session, returning above the 5,200 level.

Wang Suiqin, Senior Market Analyst at OANDA, said the STI's late rebound was mainly boosted by news of positive progress in US-Iran talks. Both sides will continue technical-level consultations and agreed on a negotiation roadmap to reach a final agreement within 60 days.

Asian Markets Mostly Higher

Regionally, Japan's Nikkei 225 hit a new closing high, rising 1.55% to 72,353.96 points, led by AI and semiconductor-related stocks.

The Nikkei reported that the Japanese government plans to push public and private investment totaling 370 trillion yen (about $2.29 trillion) across 17 sectors including AI, semiconductors, and aerospace by 2040. This boosted expectations for increased investment in growth industries, driving up semiconductor, robotics, and AI-related tech stocks.

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

Glenn Yin, Research Director at ACCM, said Monday's trading showed that AI remains the strongest factor against geopolitics and high interest rates.

Wataru Akiyama, equity strategist at Nomura, said AI-related companies are again leading the market rally, but investors remain vigilant on Iran and Middle East developments.

STI Short-Term Bullish

Beyond geopolitics, Wang Suiqin noted the market is also eyeing the US Personal Consumption Expenditures (PCE) report due Thursday (June 25). If core PCE exceeds 3.3%, the Fed may take a more hawkish stance, strengthening the USD and potentially triggering profit-taking in Singapore stocks.

However, with the STI holding above its 20-day moving average, Wang remains bullish on short-term prospects, with resistance at 5,350 points.

Local Market: More Decliners Than Gainers

Singapore shares saw trading volume of 1.26 billion shares worth S$2.01 billion on Monday. There were 270 gainers and 306 losers.

Among STI components, 12 rose, three flat, and 15 fell. DFI Retail Group (DFIRG) led gainers, up 3.8% to close at US$3.82. Jardine Matheson Holdings (JMH) had the biggest decline, down 3.95% to close at US$62.2.

In corporate news, GuocoLand subsidiary GLL IHT Pte. Ltd has priced S$110 million notes at 2.5%, due to be issued on June 30. The notes are part of the company's S$3 billion multi-currency MTN program, with proceeds for working capital. The notes mature on September 30, 2030, paying semi-annual interest on March 30 and September 30, first payment March 30, 2027. GuocoLand shares fell 0.46% to S$2.18.

FJ Benjamin placed 42 million new shares at S$0.0072 each to two investors, including Eu Yan Sang fourth-generation descendant Eu Yee Ming. The company said Eu Yee Ming subscribed for 14 million shares worth S$100,800. Another investor, Rosslyn Leong Sou Fong, subscribed for the remaining 28 million shares worth S$201,600. After placement, they hold 1.14% and 2.28% respectively. FJ Benjamin shares closed flat at S$0.008.