US-Iran Talks Boost Asian Stocks; STI Up 0.22%

Progress in US-Iran peace talks eased market concerns over a breakdown, lifting most Asian stocks. The Straits Times Index on Monday (June 22) rose 0.22%, or 11.31 points, to close at 5,204.01.

The STI opened lower and remained volatile, but rebounded sharply in late trade, returning to the 5,200 level.

OANDA Senior Market Analyst Wang Suiqin told Lianhe Zaobao that the late rebound was mainly driven by positive news on US-Iran talks. The two sides will continue technical-level consultations and agreed on a roadmap to reach a final deal within 60 days.

Regional Markets Mostly Stronger; AI Sector Continues to Lead

Regionally, Japan's Nikkei 225 index hit a fresh closing high, gaining 1.55% to 72,353.96, led by AI and semiconductor-related stocks.

The Nikkei earlier reported that Japan plans to drive public and private investment totaling 370 trillion yen (approx. $2.29 trillion) across 17 fields, including AI, semiconductors, and aerospace, by 2040. The news fueled expectations of increased investment in growth sectors, boosting semiconductors, robotics, and AI tech stocks.

Taiwan stocks in 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 shows that AI remains the strongest factor against geopolitical risks and high interest rates.

Nomura equity strategist Wataru Akiyama noted that AI-related companies were again the main drivers. However, markets remain highly alert to developments in Iran and the Middle East.

Market Focus on PCE Data; STI Still Bullish Short-Term

Beyond geopolitics, Wang Suiqin believes markets also focus on the US Personal Consumption Expenditure (PCE) data due Thursday (June 25). If core inflation exceeds 3.3%, the Fed's policy path may turn more hawkish, strengthening the dollar and triggering profit-taking in Singapore equities.

However, with the STI staying above its 20-day moving average, Wang remains bullish on the near-term outlook, with resistance at 5,350.

Singapore Market Volume Shrinks; Stock Divergence

Monday's total trading volume on the Singapore market was 1.26 billion shares, with total turnover of S$2.01 billion. There were 270 rising stocks and 306 falling.

Among STI component stocks, 12 rose, three were flat, and 15 fell.

DFI Retail Group led gainers, up 3.8% to close at US$3.82. Jardine Matheson Holdings was the biggest loser, down 3.95% to close at US$62.2.

In company news, GuocoLand Limited's subsidiary, GLL IHT Pte. Ltd., has priced notes totaling S$110 million at a coupon rate of 2.5%, expected to be issued on June 30.

The notes are part of the company's S$3 billion multicurrency medium-term note program. Proceeds will be used for GuocoLand's and its subsidiaries' operating expenses. 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% on Monday to close at S$2.18.

Apparel retailer FJ Benjamin placed 42 million new shares at S$0.0072 per share to two investors, including Yee Ming Ming, a fourth-generation descendant of local TCM chain Eu Yan Sang.

According to the company, Yee subscribed for 14 million shares worth S$100,800. Another investor, Rosslyn Leong Sou Fong, subscribed for the remaining 28 million shares worth S$201,600. After the placement, Yee and Leong hold 1.14% and 2.28% stakes, respectively.

FJ Benjamin shares closed flat at S$0.008.