US-Iran Talks Progress Boost Asian Stocks, STI Up 0.22%

Progress in US-Iran peace talks eased market concerns, Asian stocks mostly higher. The Straits Times Index on Monday (June 22) rose 0.22% or 11.31 points to close at 5204.01.

The STI opened lower and traded sideways before a late rebound, returning above 5200.

OANDA senior market analyst Wang Suiqin said the rebound was mainly driven by positive progress in US-Iran talks. Both sides will continue technical consultations and agreed on a roadmap for reaching a final agreement within 60 days.

Regional Stocks Mostly Higher, Nikkei 225 Hits New Record

Regionally, Japan's Nikkei 225 hit a new closing high, up 1.55% to 72353.96, led by AI and semiconductor stocks.

Nikkei earlier reported that the Japanese government plans to mobilize 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 growth industries, lifting semiconductor, robotics and AI tech stocks.

Seoul, Shanghai and Shenzhen markets 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 the strongest factor against geopolitical and high interest rate risks.

Nomura equity strategist Wataru Akiyama said AI-related companies again led the rally, but the market remains vigilant on Iran and Middle East developments.

Market Focus on US PCE, STI Short-term Bullish

Besides geopolitics, Wang said the market is also focused on the US PCE data due Thursday (June 25). If core PCE reaches 3.3% or above, the Fed's policy direction could turn more hawkish, pushing the dollar stronger and potentially triggering profit-taking in Singapore stocks.

However, with the STI staying above the 20-day moving average, Wang remains bullish on the short-term outlook, with resistance at 5350.

Active Trading, Divergent Stock Movements

Total trading volume on Monday was 1.26 billion shares, with total value of S$2.01 billion. There were 270 gainers and 306 losers.

Among STI constituents, 12 rose, three flat and 15 fell.

Top gainer was DFIRG, up 3.8% to close at $3.82. Biggest loser was JMH, down 3.95% to close at $62.2.

In corporate news, GuocoLand subsidiary GLL IHT Pte. Ltd has priced S$110M notes with 2.5% coupon, expected to issue on June 30.

The notes are part of the S$3B multi-currency MTN programme, proceeds for working capital. Notes mature on Sep 30, 2030, with semi-annual interest payments on March 30 and Sep 30 each year, first payment March 30, 2027.

GuocoLand shares fell 0.46% to S$2.18 on Monday.

FJ Benjamin placed 42 million new shares at 0.72 cents each to two investors, including Eu Yan Sang fourth-generation descendant Eu Yi Ming.

The company said Eu Yi Ming subscribed 14 million shares worth S$100,800, and Rosslyn Leong Sou Fong subscribed 28 million shares worth S$201,600. Post-placement, they hold 1.14% and 2.28% respectively.

FJ Benjamin shares closed unchanged at 0.8 cents.