Asian Defense Stocks Extend Rally Amid Geopolitical Risks
Asian defense stocks surged for a second consecutive session as investors continued to price in heightened geopolitical risks following the U.S. military action in Venezuela and the capture of former leader Nicolas Maduro. The developments kept defense and aerospace companies in focus, even as broader Asian markets delivered mixed performances.
In Japan, major defense manufacturers posted solid gains. Kawasaki Heavy Industries climbed 3.53%, while IHI Corp advanced 3.23%. South Korea saw even stronger momentum, with Korea Aerospace Industries soaring as much as 11%. Poongsan Corp jumped over 6%, and Hanwha Aerospace added 0.59%.
Japan Markets Hit Record Highs
Japanese equities outperformed the region, driven by strong institutional buying and optimism around industrial and defense sectors. The Nikkei 225 rose 0.69%, while the broader Topix Index surged 1.3% to reach a new all-time high, underscoring strong domestic market confidence.
South Korea and Australia Lag Regional Gains
South Korean markets were relatively subdued. The Kospi Index ended flat, while the tech-heavy Kosdaq slipped 0.43%, reflecting cautious sentiment among growth investors.
Australia’s S&P/ASX 200 declined 0.42% as investors booked profits amid global uncertainty and commodity price fluctuations.
Hong Kong and China Markets Climb on Materials Strength
Hong Kong stocks rallied sharply, supported by strong gains in basic materials and real estate shares. The Hang Seng Index advanced 1.6%, led by China Hongqiao Group, which surged 7.89%, and Zijin Mining Group, up 5.57%.
On the mainland, China’s CSI 300 Index added 0.47%, as selective buying emerged in large-cap industrial and resource stocks.
U.S. Markets Remain Resilient Despite Global Tensions
U.S. equity futures were flat during early Asian trading hours, following a strong overnight session on Wall Street. Investors appeared confident that the Venezuela situation would remain contained without escalating into a broader conflict.
The Dow Jones Industrial Average jumped 594.79 points, or 1.23%, closing at a record 48,977.18. The S&P 500 gained 0.64% to finish at 6,902.05, while the Nasdaq Composite rose 0.69% to settle at 23,395.82.
Crude oil prices also moved higher, reflecting geopolitical risk premiums, while global equities largely shrugged off immediate concerns.
