U.S.-Iran Talks Progress Lifts Asian Stocks; STI Up 0.22%
Progress in peace talks between the United States and Iran eased market fears of a breakdown in negotiations, and most Asian stock markets advanced. Singapore’s Straits Times Index rose 0.22% or 11.31 points on Monday (June 22), closing at 5,204.01.
The STI fell at the open and traded in a volatile range before rebounding sharply near the close, returning to the 5,200 level.
When speaking to Lianhe Zaobao, OANDA senior market analyst Wang Suiqin said the late recovery in the STI was mainly boosted by news of positive progress in U.S.-Iran talks. The two sides will continue technical-level consultations and have agreed on a roadmap for reaching a final deal within 60 days.
Across regional markets, Japan’s Nikkei 225 hit another record closing high, rising 1.55% to 72,353.96 points. Leading the gains were AI and semiconductor-related stocks.
Earlier, the Nikkei reported that the Japanese government plans to encourage public and private investment totaling 370 trillion yen (about US$2.29 trillion) by 2040 across 17 fields, including AI, semiconductors and aerospace. After the news, expectations grew for higher investment in growth sectors, lifting semiconductor, robotics and AI-related tech stocks.
Markets in Seoul, Shanghai, Shenzhen and Taiwan also rose, with gains ranging from 0.69% to 2.75%. Hong Kong and Sydney closed down 0.65% and 0.18%, respectively.
ACCM Research director Glenn Yin said Monday’s trading showed that AI remains the strongest factor against geopolitics and high interest rates.
Nomura Securities stock strategist Wataru Akiyama said AI-related companies again became the main driver of gains. However, investors remain highly alert to developments in Iran and the Middle East.
Beyond geopolitics, Wang Suiqin said investors are also watching the U.S. personal consumption expenditures (PCE) data due on Thursday (June 25). If core inflation comes in above 3.3%, the Fed’s policy stance may turn more hawkish, strengthening the US dollar and prompting some profit-taking in Singapore stocks.
However, as the STI remains above its 20-day moving average, Wang stays bullish on the short-term outlook, with resistance at 5,350.
Singapore stock market trading overview and stock moves
Singapore stock market turnover on Monday was 1.26 billion shares worth S$2.01 billion; 270 stocks rose and 306 fell.
Among STI constituents, 12 stocks rose, three were unchanged and 15 fell.
The top gainer was DFI Retail Group (DFIRG), up 3.8% to close at US$3.82. The biggest loser was Jardine Matheson Holdings (JMH), down 3.95% to close at US$62.20.
On company news, GLL IHT Pte. Ltd., a subsidiary of GuocoLand Limited, has completed pricing of S$110 million notes with a 2.5% coupon, and issuance is expected on June 30. The notes are part of the company’s S$3 billion multicurrency medium-term note programme, and the proceeds will be used to meet operating expenses of GuocoLand and its subsidiaries. The notes mature on September 30, 2030, with interest paid every six months on March 30 and September 30, starting on March 30, 2027.
GuocoLand shares fell 0.46% on Monday to close at S$2.18.
Apparel retailer FJ Benjamin placed 42 million new shares at 0.72 cent each to two investors, one of whom is Yu Yiming, a fourth-generation descendant of local traditional Chinese medicine chain Eu Yan Sang. In a statement, the company said Yu subscribed for 14 million shares worth S$108,000. The other investor, Rosslyn Leong Sou Fong, subscribed for the remaining 28 million shares worth S$201,600. After the placement, Yu Yiming and Rosslyn Leong hold 1.14% and 2.28% of the company, respectively. FJ Benjamin shares closed at 0.8 cent, unchanged.
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