US-Iran Negotiation Progress Boosts Asian Stocks, STI Rebounds
Progress in US-Iran peace talks eased concerns about a breakdown in negotiations, and most Asian stock markets rose. The Straits Times Index on Monday (June 22) rose 0.22% or 11.31 points to close at 5204.01 points.
The STI opened lower and fluctuated but rebounded suddenly in late trading, returning to the 5200-point level.
OANDA Senior Market Analyst Wang Suiqin said in a media interview that the STI's late rebound was mainly driven by positive news on US-Iran negotiations. Both sides will continue technical-level consultations and reached a consensus on a negotiation roadmap to reach a final agreement within 60 days.
Among regional stock markets, Japan's Nikkei 225 index set a new closing high, rising 1.55% for the day to 72,353.96 points. Artificial intelligence (AI) and semiconductor-related stocks led the gains.
The Nikkei newspaper previously reported that the Japanese government plans to promote a total investment of 370 trillion yen (approximately $2.29 trillion) in 17 fields including AI, semiconductors, and aerospace by 2040, combining public and private funds. After the news broke, market expectations of increased investment in growth industries drove up semiconductor, robotics, and AI-related tech stocks.
Stocks in Seoul, Shanghai, Shenzhen, and Taiwan also rose, with gains ranging from 0.69% to 2.75%. Hong Kong and Sydney markets closed down 0.65% and 0.18%, respectively.
ACCM Research Director Glenn Yin believes Monday's market trading shows that AI remains the most powerful factor against geopolitical risks and high interest rates.
Nomura stock strategist Wataru Akiyama said AI-related companies once again became the main driver of the stock market rally, but the market remains highly vigilant about developments in Iran and the Middle East.
Wang Suiqin added that apart from geopolitical tensions, the market is also focused on the US Personal Consumption Expenditures (PCE) data due on Thursday (25th). If core inflation reaches above 3.3%, the Fed's monetary policy direction may tilt more hawkish, strengthening the US dollar, which could lead to profit-taking by investors in the Singapore market.
At the same time, Wang Suiqin believes that given the STI remains above its 20-day moving average, the short-term outlook remains bullish, with resistance at 5350 points.
Japan's Stock Market Hits New High: AI and Semiconductors Lead
Japan's Nikkei 225 index closed up 1.55% at 72,353.96 points, setting a new closing high during the session; market performance showed AI and semiconductor-related stocks were the main driving factors.
The Japanese government's long-term investment plan in AI, semiconductors, aerospace and other fields further strengthened market expectations of investment in growth industries, driving up related tech stocks.
Regional Market Performance Diverges: Singapore Rebounds in Late Trading
The Singapore STI rebounded in late trading to around 5200 points, closing up 0.22%. In the region, most markets rose, but Hong Kong and Sydney markets fell.
In Taiwan markets, related markets in Seoul, Shanghai, and Shenzhen rose between 0.69% and 2.75%. Hong Kong and Sydney markets closed down 0.65% and 0.18%, respectively.
Focus on PCE and Monetary Policy: STI Remains Bullish in Short Term
In addition to digesting US-Iran negotiation progress, the market also turned its focus to US PCE data. If core inflation rises above 3.3%, it could push the Fed's policy to be more hawkish and strengthen the US dollar, thereby affecting Singapore market sentiment and capital flows.
On the technical side, with the STI maintaining above its 20-day moving average, analysts remain bullish on the short-term outlook and view 5350 points as a key resistance level.
Key Points on Singapore Individual Stocks and Company Updates
Total trading volume on the Singapore stock market Monday was 1.26 billion shares, with a total turnover of S$2.01 billion. There were 270 rising stocks and 306 falling stocks. Among STI component stocks, 12 rose, three were flat, and 15 fell.
The top gainer was DFI Retail Group (DFIRG), with its stock price rising 3.8% to close at US$3.82. The biggest loser was Jardine Matheson Holdings (JMH), with its stock price falling 3.95% to close at US$62.2.
GuocoLand Limited's subsidiary GLL IHT Pte. Ltd. has completed pricing for notes totaling S$110 million with 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. The funds raised will be used to meet the operating expenses of GuocoLand and its subsidiaries. The notes mature on September 30, 2030, with interest payable semi-annually on March 30 and September 30 each year, with the first payment on March 30, 2027. GuocoLand's stock 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, one of whom is Eu Yi Ming, the fourth-generation descendant of local traditional Chinese medicine firm Eu Yan Sang: subscribing for 14 million shares, totaling S$100,800; another investor, Rosslyn Leong Sou Fong, subscribed for 28 million shares, totaling S$201,600. After the placement, Eu Yi Ming and Leong Sou Fong hold 1.14% and 2.28% of the company's shares, respectively. FJ Benjamin's stock closed at S$0.008, unchanged.
