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

## Trading Sentiment: US-Iran Talks Progress Boost Asian Stocks Progress in US-Iran peace talks eased fears of a breakdown, lifting most Asian stocks. Singapore's Straits Times Index rose 0.22% or 11.31 points on Monday (June 22) to close at 5204.01 points. The STI opened lower and traded sideways but rebounded sharply in late trade, returning to the 5200 level. ## Market Interpretation: Technical Talks and Roadmap Consensus OANDA Senior Market Analyst Wang Suiqin said the STI's late rebound was mainly driven by positive news from US-Iran talks. The two sides will continue technical-level consultations and agreed on a roadmap to reach a final agreement within 60 days. ## Regional Performance: Nikkei New Record High, AI & Semis Lead Japan's Nikkei 225 hit a new closing high, rising 1.55% to 72353.96 points, led by AI and semiconductor stocks. Nikkei reported earlier that Japan's government plans to promote public and private investment totaling 370 trillion yen (approx. $2.29 trillion) in 17 fields including AI, semiconductors, and aerospace by 2040. The news spurred market expectations of increased investment in growth sectors, boosting semiconductor, robotics, and AI-related tech stocks. Seoul, Shanghai, Shenzhen, and Taiwan stocks also rose, with gains between 0.69% and 2.75%. Hong Kong and Sydney fell 0.65% and 0.18% respectively. ## Risk Factors: Geopolitics and PCE Expectations ACCM Research Director Glenn Yin noted that Monday's trading showed AI remains the strongest factor hedging against geopolitical and high interest rate risks. Nomura equity strategist Wataru Akiyama said AI-related companies were again the main driving force, but markets remain highly vigilant about Iran and Middle East developments. Wang Suiqin added that markets also focus on US PCE data due Thursday (June 25). If core inflation exceeds 3.3%, Fed policy could turn more hawkish, strengthening the USD and potentially triggering profit-taking in Singapore stocks. ## Technical View: STI Above 20-Day MA Remains Bullish Wang Suiqin believes that with the STI staying above its 20-day moving average, the near-term outlook remains bullish, with resistance at 5350 points. ## Singapore Market: Volume and STI Components Singapore stocks saw 1.26 billion shares traded with a total value of S$2.01 billion; 270 gainers vs 306 losers. ## Stock Moves and Financing Among STI constituents, 12 rose, 3 flat, 15 fell. Top gainer: DFIRG up 3.8% to US$3.82. Top loser: JMH down 3.95% to US$62.2. GuocoLand Limited's subsidiary GLL IHT Pte. Ltd. completed pricing of notes totaling S$110 million with a 2.5% coupon, expected to be issued on June 30. The notes are part of the company's S$3 billion multi-currency MTN program, proceeds for working capital of GuocoLand and its subsidiaries. Notes mature September 30, 2030, with semi-annual interest payments on March 30 and September 30, first payment March 30, 2027. GuocoLand shares fell 0.46% to S$2.18 on Monday. Fashion retailer FJ Benjamin placed 42 million new shares at 0.72 cents each to two investors, including Eu Yan Sang fourth-generation descendant Yee Ming Eu. The company said Yee Ming Eu subscribed to 14 million shares, total S$100,800; another investor Rosslyn Leong Sou Fong subscribed to the remaining 28 million shares, total S$201,600. After placement, Yee Ming Eu and Rosslyn Leong hold 1.14% and 2.28% of the company respectively. FJ Benjamin shares closed at 0.8 cents, unchanged. For more Singapore stock market info, visit the link.