Market Focus Daily: Wednesday, June 25, 2025
Asian socks rally as Iran-Israel ceasefire holds; Trump baffles with sudden U-turn on China buying Iranian oil; ST Engineering divests entire equity interest in US-based construction player LeeBoy for US$290 million.
Synopsis: Market Focus Daily is a closing bell roundup by The Business Times that looks at the day's market movements and news from Singapore and the region.
Written and hosted by: Emily Liu (emilyliu@sph.com.sg)
Produced and edited by: Chai Pei Chieh & Claressa Monteiro
Produced by: BT Podcasts, The Business Times, SPH Media
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Business Times
an hour ago
- Business Times
Nato summit commits to higher spending and collective defence
[THE HAGUE] Nato leaders on Wednesday (Jun 25) backed a big increase in defence spending and restated their commitment to defend each other from attack after a brief summit tailor-made for US President Donald Trump. In a short statement, Nato endorsed a higher defence spending goal of 5 per cent of GDP by 2035 – a response to a demand by Trump and to Europeans' fears that Russia poses a growing threat to their security following the 2022 invasion of Ukraine. 'We reaffirm our ironclad commitment to collective defence as enshrined in Article 5 of the Washington Treaty – that an attack on one is an attack on all,' the statement said, after Trump had sparked concern on Tuesday by saying there were 'numerous definitions' of the clause. But just before the summit opened, Trump had said of fellow Nato members: 'We're with them all the way.' The 32-nation alliance for its part heeded a call by Trump for other countries to step up their spending on defence to reduce Nato's reliance on the US. Nato Secretary General Mark Rutte acknowledged that it was not easy for European countries and Canada to find the extra money, but said it was vital to do so. 'There is absolute conviction with my colleagues at the table that, given this threat from the Russians, given the international security situation, there is no alternative,' the former Dutch prime minister told reporters in his home city of The Hague. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The new spending target – to be achieved over the next 10 years – is a jump worth hundreds of billions of dollars a year from the current goal of 2 per cent of GDP, although it will be measured differently. Countries would spend 3.5 per cent of GDP on core defence – such as troops and weapons – and 1.5 per cent on broader defence-related measures such as cybersecurity, protecting pipelines and adapting roads and bridges to handle heavy military vehicles. All Nato members have backed a statement enshrining the target, although Spain declared it does not need to meet the goal and can meet its commitments by spending much less. Rutte disputes that but accepted a diplomatic fudge with Spanish Prime Minister Pedro Sanchez as part of his efforts to give Trump a diplomatic victory and make the summit go smoothly. Spain said on Wednesday that it did not expect its stance to have any repercussions. Rutte has kept the summit and its final statement short and focused on the spending pledge to try to avert any friction with Trump. Ukrainian President Volodymyr Zelenskiy had to settle for attending the pre-summit dinner on Tuesday evening rather than the main meeting on Wednesday, although he was set to meet Trump separately. Hungarian Prime Minister Viktor Orban diluted the display of unity when he told reporters that Nato had no business in Ukraine and that Russia was not strong enough to represent a real threat to Nato. The Kremlin has accused Nato of being on a path of rampant militarisation and portraying Russia as a 'fiend of hell' in order to justify its big increase in defence spending. REUTERS
Straits Times
an hour ago
- Straits Times
Nato summit commits to higher spending and collective defence
Nato endorsed a higher defence spending goal of 5 per cent of GDP by 2035, a response to a demand by US President Donald Trump. PHOTO: AFP THE HAGUE - Nato leaders on June 25 backed a big increase in defence spending and restated their commitment to defend each other from attack after a brief summit tailor-made for US President Donald Trump. In a short statement, Nato endorsed a higher defence spending goal of 5 per cent of GDP by 2035 – a response to a demand by Mr Trump and to Europeans' fears that Russia poses a growing threat to their security following the 2022 invasion of Ukraine. 'We reaffirm our ironclad commitment to collective defence as enshrined in Article 5 of the Washington Treaty – that an attack on one is an attack on all,' the statement said, after Mr Trump had sparked concern on June 24 by saying there were 'numerous definitions' of the clause. But just before the summit opened, Mr Trump had said of fellow Nato members: 'We're with them all the way.' The 32-nation alliance, for its part, heeded a call by Mr Trump for other countries to step up their spending on defence to reduce Nato's reliance on the US. Nato Secretary-General Mark Rutte acknowledged that it was not easy for European countries and Canada to find the extra money, but said it was vital to do so. 'There is absolute conviction with my colleagues at the table that, given this threat from the Russians, given the international security situation, there is no alternative,' the former Dutch prime minister told reporters in his home city of The Hague. The new spending target – to be achieved over the next 10 years – is a jump worth hundreds of billions of dollars a year from the current goal of 2 per cent of GDP, although it will be measured differently. Countries would spend 3.5 per cet of GDP on core defence – such as troops and weapons – and 1.5 per cent on broader defence-related measures such as cyber security, protecting pipelines and adapting roads and bridges to handle heavy military vehicles. All Nato members have backed a statement enshrining the target, although Spain declared it does not need to meet the goal and can meet its commitments by spending much less. Mr Rutte disputes that but accepted a diplomatic fudge with Spanish Prime Minister Pedro Sanchez as part of his efforts to give Mr Trump a diplomatic victory and make the summit go smoothly. Spain said on June 25 that it did not expect its stance to have any repercussions. Trump to meet Zelensky Mr Rutte has kept the summit and its final statement short and focused on the spending pledge to try to avert any friction with Mr Trump. Ukrainian President Volodymyr Zelensky had to settle for attending the pre-summit dinner on the evening of June 24 rather than the main meeting on June 25, although he was set to meet Mr Trump separately. Hungarian Prime Minister Viktor Orban diluted the display of unity when he told reporters that Nato had no business in Ukraine and that Russia was not strong enough to represent a real threat to Nato. The Kremlin has accused Nato of being on a path of rampant militarisation and portraying Russia as a 'fiend of hell' in order to justify its big increase in defence spending. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Business Times
an hour ago
- Business Times
China will be able to navigate around restrictions imposed by others, emerge more resilient: PM Wong
[BEIJING] Whatever restrictions it may face from other countries, China is likely to find a way around them by developing its own capabilities, Prime Minister Lawrence Wong said on Wednesday (Jun 25). China's response to increasing geopolitical contestation was among the topics that PM Wong tackled in a wrap-up interview with Singapore media, towards the end of his introductory visit to China. He noted increasing attempts by countries 'to weaponise economic interdependencies and identify potential choke points as leverage, all in the name of security and resilience'. But the more a country does this, the more others are incentivised to find alternative solutions and sources, he added. 'Be it high-end semiconductor chips or rare earth materials, there will always be alternatives. So what may appear to be leverage today may very well disappear, or the leverage will be minimised down the road.' This is already playing out today, he said. 'Whatever the restrictions or controls (that) may be imposed on China, I'm quite sure China will find a way, navigate its way around them.' BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up He added: 'China will redouble its efforts, as it's already doing, to develop its own indigenous technology, strengthen its R&D (research and development) base – which is happening – and emerge more resilient from this process.' On China's economic prospects more broadly, he noted that its property market has become more stable and the economy continues to do well, with efforts to boost consumption. A large share of the workforce is also still in the rural and agricultural sector, he noted. This means there are 'tremendous opportunities' for urbanisation and modernisation, to uplift hundreds of millions of Chinese. Bringing temperatures down While US-China relations are 'in a state of flux' and no one knows what will happen next, it is good that talks have 'helped to bring down the temperature', said PM Wong. He hoped for continued constructive engagements that allow both sides to find a way forward. Singapore and Asean member states have also been engaging the US, he noted. His hope is that the eventual reciprocal tariffs imposed by the US on Asean countries will be lowered 'closer to 10 per cent, if not 10 per cent'. Even so, such a rate would still be three times higher than in the past, he cautioned. 'So we have to be realistic. We are going to be in a world where barriers are higher, and we will have to find ways to navigate around this new environment.' As for other geopolitical tensions, including in the Middle East, PM Wong said that Singapore wants to have good relations – which goes beyond 'being friendly, saying polite words, handshakes and hugs'. While good rapport is important, having good relations means building on substance, he said. 'Singapore must have relevance, and we must be able to offer something on the table to our partners.' One way to stay relevant is by being an effective interlocutor, he said. Singapore has a reputation as 'a trusted, reliable, principled partner' and 'honest broker', trusted to facilitate conversations even among those who disagree. This is even more important in a world of growing tensions and greater separation, he added. Strengthening bilateral ties Since arriving in China on Jun 22, PM Wong has met Chinese Premier Li Qiang and President Xi Jinping in Beijing, and attended the World Economic Forum's Summer Davos 2025 in Tianjin. In his wrap-up interview, the prime minister reiterated that his visit builds on strong foundations laid by his predecessors. Long-running joint projects, such as the Suzhou Industrial Park and Tianjin Eco-city, remain platforms for cooperation – and are entering new areas such as digital technologies, renewable energy and even modern services, he said. Beyond two-way collaboration, a new area with 'some potential' is for Singapore and China to cooperate in a third country, said PM Wong, noting that this is the goal of the Third Country Training Programme announced on Monday. The programme is for government officials from Asean member states and Timor Leste, which is slated to join the bloc. It aims to improve regional capacity to tackle long-term challenges in sustainability and resilience. PM Wong said that he had good conversations with the Chinese leaders, 'quite candidly and openly' discussing not just bilateral issues but also regional and global developments. He hoped to continue these valuable conversations and has invited Li and Xi to visit Singapore at their convenience. On Wednesday night, the prime minister also met Singaporeans living in China, ahead of the end of his official trip on Thursday.
