Overseas Market Review: US-Iran Talks Boost Asian Stocks, STI Up 0.22%
Progress in US-Iran peace talks eased fears of a collapse in negotiations, driving most Asian stocks higher. The Straits Times Index (STI) rose 0.22% or 11.31 points on Monday (June 22) to close at 5204.01 points.
The STI opened lower and traded in a volatile range before a late-session rebound brought it back above the 5200 level.
OANDA Senior Market Analyst Wang Suiqin told Lianhe Zaobao that the late recovery was mainly driven by positive news on US-Iran talks. Both sides will continue technical-level consultations and have agreed on a roadmap to reach a final deal within 60 days.
In regional markets, Japan's Nikkei 225 hit a new closing high, rising 1.55% to 72,353.96 points, led by AI and semiconductor-related stocks.
Nikkei earlier reported that the Japanese government plans to promote a combined public and private investment of 370 trillion yen (about $2.29 trillion) in 17 areas including AI, semiconductors, and aerospace by 2040. The news boosted expectations for increased investment in growth sectors, lifting semiconductor, robotics, and AI-related tech stocks.
Stock markets in Seoul, Shanghai, Shenzhen, and Taiwan also rose, with gains ranging from 0.69% to 2.75%. Hong Kong and Sydney fell 0.65% and 0.18% respectively.
ACCM Research Director Glenn Yin said Monday's trading showed that AI remains the most powerful factor insulating against geopolitical risks and high interest rates.
Nomura equity strategist Wataru Akiyama said AI-related companies were again the main drivers of stock gains, though markets remained highly vigilant about developments in Iran and the Middle East.
Beyond geopolitics, Wang Suiqin said markets are also focused on the US Personal Consumption Expenditures (PCE) data to be released on Thursday (June 25). If core inflation reaches 3.3% or higher, the Fed's monetary policy could turn more hawkish, strengthening the US dollar and potentially triggering profit-taking in Singapore stocks.
However, given that the STI is holding above its 20-day moving average, Wang remains bullish on the near-term outlook, with resistance at 5350 points.
Trading Data and Market Structure: STI Mostly Recovered, Volume Stays Active
Total trading volume on Singapore stocks Monday was 1.26 billion shares, with total turnover of SGD 2.01 billion. There were 270 advancers and 306 decliners.
Among STI component stocks, 12 rose, three were flat, and 15 fell.
The top gainer was DFI Retail Group (DFIRG), up 3.8% to close at USD 3.82. The biggest loser was Jardine Matheson Holdings (JMH), down 3.95% to close at USD 62.2.
Singapore Stocks Watch: Note Pricing and Placement Information
In corporate news, GuocoLand Limited subsidiary GLL IHT Pte. Ltd. has priced notes totaling SGD 110 million with a 2.5% coupon, expected to be issued on June 30. The notes are part of the company's SGD 3 billion multi-currency medium-term note program, and proceeds will be used for working capital of GuocoLand and its subsidiaries. The notes mature on September 30, 2030, with semi-annual interest payments on March 30 and September 30 each year, starting March 30, 2027.
GuocoLand shares fell 0.46% to close at SGD 2.18 on Monday.
Apparel retailer FJ Benjamin placed 42 million new shares at SGD 0.0072 each to two investors, including fourth-generation descendant of local Chinese medicine chain Eu Yan Sang, Yee Ming Eu. The company said in a filing that Yee Ming Eu subscribed for 14 million shares, totaling SGD 100,800, while another investor, Rosslyn Leong Sou Fong, subscribed for the remaining 28 million shares, totaling SGD 201,600. After the placement, Yee Ming Eu and Rosslyn Leong hold 1.14% and 2.28% of the company respectively.
FJ Benjamin shares closed at SGD 0.008, unchanged.
What to Watch Next: PCE and Inflation Expectations, AI and Semiconductors Remain Key Themes
Market trading shows that AI remains a crucial factor in hedging against geopolitical risks and high interest rates. Meanwhile, funds remain cautious on developments in Iran and the Middle East, and focus will be on the US PCE release and core inflation reading; if core inflation reaches 3.3% or higher, the Fed may turn more hawkish, strengthening the USD and potentially triggering profit-taking in Singapore markets. In the near term, the STI holds above its 20-day moving average, with a bullish short-term outlook and resistance at 5350 points.
