Japanese and South Korean defense stocks have surged after Palestinian militant group Hamas attacked Israel.
The two markets are having their first day of trade after the attacks, having had a public holiday on Monday. Japan's Prime Minister Fumio Kishida walks past a Japan Ground Self-Defense Force Type 19 155 mm wheeled self-propelled howitzer and a Type 12 surface-to-ship missile as he inspects equipment during a review at JGSDF Camp Asaka in Tokyo on Nov. 27, 2021. At his first troop review Saturday, Kishida renewed his pledge to consider "all options," including acquiring enemy base strike capability.
In South Korea, defense heavyweights Hanhwa Aerospace — which builds artillery and air defense systems — gained 2.23%, while Korea Aerospace Industries rose 4.07%. KAI produces fighter jets and aviation platforms for the South Korean military. Smaller South Korean defense players saw bigger gains. Shares of electronic warfare systems maker Victek spiked almost 30%. Firstec, which manufactures fire control systems and guided munitions jumped 20%.