US-Iran talks progress boost Asian stocks; STI up 0.22%
Progress in US-Iran peace talks eased market fears of a breakdown, Asian stocks mostly rose. The Singapore Straits Times Index on Monday (June 22) rose 0.22% or 11.31 points to close at 5204.01.
The STI fell at open then traded sideways before rebounding late to return above 5200.
OANDA senior market analyst Wang Suiqin said the late rebound was mainly driven by positive news from US-Iran talks. Both sides will continue technical-level consultations and agreed on a roadmap to reach a final agreement within 60 days.
Regionally, Japan's Nikkei 225 hit a new closing high, rising 1.55% to 72353.96. Gains were led by AI and semiconductor-related stocks.
Nikkei reported earlier that the Japanese government plans to promote public and private investment totaling JPY 370 trillion (about USD 2.29 trillion) across 17 fields including AI, semiconductors, aerospace by 2040. The news boosted market expectations of increased investment in growth sectors, lifting semiconductor, robotics, and AI-related tech stocks.
Seoul, Shanghai, and Shenzhen also rose, with gains 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 a strong hedge against geopolitics and high interest rates.
Nomura equity strategist Wataru Akiyama said AI-related companies again led the rally. However, the market remains highly alert to developments in Iran and the Middle East.
Besides geopolitics, Wang noted the market is also watching the US PCE data due Thursday (25th). If core inflation exceeds 3.3%, the Fed's policy direction may turn more hawkish, strengthening the USD, and Singapore stocks could see profit-taking.
However, with the STI staying above its 20-day moving average, Wang remains bullish on short-term outlook, with resistance at 5350.
Local stocks: more decliners than gainers
Singapore stocks on Monday saw 1.26B shares traded worth SGD 2.01B; 270 stocks rose, 306 fell.
Among STI components, 12 rose, 3 flat, 15 fell. DFI Retail Group (DFIRG) led gains, up 3.8% to close at USD 3.82. JMH fell the most, down 3.95% to close at USD 62.2.
In corporate news, GuocoLand subsidiary GLL IHT Pte. Ltd. priced SGD 110M notes at 2.5% coupon, expected to be issued June 30.
The notes are part of the company's SGD 3B multi-currency MTN program, proceeds to fund GuocoLand and its subsidiaries' operating expenses. The notes mature September 30, 2030, paying semi-annual interest on March 30 and September 30, first payment March 30, 2027.
GuocoLand shares fell 0.46% to close at SGD 2.18.
Apparel retailer FJ Benjamin placed 42M new shares at SGD 0.0072 per share to two investors, including Eu Yan Sang fourth-generation heir Eu Yee Ming.
The company said Eu subscribed 14M shares for SGD 100,800. The other investor, Rosslyn Leong Sou Fong, subscribed the remaining 28M shares for SGD 201,600. After placement, Eu and Leong hold 1.14% and 2.28% respectively.
FJ Benjamin shares closed flat at SGD 0.008.
