US-Iran talks progress boosts Asian stocks; STI up 0.22%
Progress in US-Iran peace talks eased market fears, leading most Asian stocks higher. The Singapore Straits Times Index on Monday (June 22) rose 0.22% or 11.31 points to close at 5204.01.
The STI traded sideways after opening lower but rebounded late to return above 5200.
OANDA senior market analyst Wang Suiqin said the late rebound was mainly driven by positive US-Iran talks. Both sides will continue technical consultations and agreed on a roadmap for a final deal within 60 days.
Regionally, Japan's Nikkei 225 hit a record close, up 1.55% to 72353.96, led by AI and semiconductor stocks.
Nikkei earlier reported that the Japanese government plans to promote public-private investment totaling JPY 370 trillion (about USD 2.29 trillion) across 17 fields including AI, semiconductors, aerospace by 2040. The news boosted expectations, lifting semiconductor, robotics, and AI tech stocks.
Seoul, Shanghai, and Shenzhen also gained, 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 AI remains the strongest hedge against geopolitics and high rates.
Nomura equity strategist Wataru Akiyama said AI-related firms again led the rally. However, the market remains highly alert to Iran and Middle East developments.
Wang noted that besides geopolitics, the market is watching the US PCE data due Thursday (25th). If core inflation exceeds 3.3%, Fed policy may turn more hawkish, strengthening the USD, leading to profit-taking in Singapore stocks.
However, with the STI above its 20-day moving average, Wang is bullish on short-term outlook, with resistance at 5350.
Singapore stocks on Monday saw 1.26B shares traded worth SGD 2.01B; 270 stocks rose, 306 fell.
Local stocks: more decliners; STI components mixed
Among STI components, 12 rose, 3 flat, 15 fell. DFIRG led gains, up 3.8% to close at USD 3.82.
JMH fell most, down 3.95% to USD 62.2.
Corporate news: GuocoLand notes priced, FJ Benjamin placement
GuocoLand subsidiary GLL IHT Pte. Ltd. priced SGD 110M notes at 2.5% coupon, to be issued June 30. The notes are part of the SGD 3B MTN program; proceeds fund working capital.
Notes mature Sept 30, 2030, pay semi-annual interest on March 30 and Sept 30, first payment March 30, 2027. GuocoLand shares fell 0.46% to SGD 2.18.
Apparel retailer FJ Benjamin placed 42M new shares at SGD 0.0072 each to two investors, including Eu Yan Sang heir Eu Yee Ming. After placement, Eu and Leong hold 1.14% and 2.28% respectively.
FJ Benjamin shares closed flat at SGD 0.008.
More Singapore stock market info available.
