When markets in Tokyo and Seoul reopened after a weekend shaken by Hamas's surprise attack on Israel, investors who had spent days absorbing the news turned quickly toward the businesses that build weapons and warships. Israel's declaration of war and its retaliatory strikes on Gaza formed the backdrop, and in both countries defense makers rose sharply, with smaller firms leading the gains. It is a familiar pattern in human affairs: when the threat of violence rises far away, capital moves toward those who prepare for it, even as airlines and other businesses dependent on calm are left to abso
Japanese and South Korean Defense Stocks Surge as Hamas Attack on Israel Rattles Markets
Victek spiked almost 30%; Firstec jumped 20%.
Mark
Defense stocks jumped in Japan and South Korea on Tuesday. Why those two markets?
Mimi
They were simply the first to open after a holiday on Monday, so Tuesday's session had to absorb the weekend's news about Hamas's attack on Israel and Israel's declaration of war.
Mark
Which moves were biggest?
Mimi
Victek, an electronic warfare maker, rose almost 30%, and Firstec, which makes fire control systems and guided munitions, rose 20%. The larger firms moved less: Hanhwa Aerospace 2.23%, KAI 4.07%.
Luke
Worth noting that the report says what moved, not why. It links the rally to the attack by timing alone. No investor or analyst is quoted explaining the buying.
Mark
And Japan?
Mimi
Kawasaki Heavy Industries led, up almost 6.5%. It builds aircraft and naval vessels for Japan's Self Defense Forces.
Luke
One day's gain also says little about durability. The piece offers no view on whether this holds.
Mark
What about the Kishida detail?
Mimi
It's background: he pledged to consider all options, including striking enemy bases. But the photo is from 2021, so it's context, not a cause.
Luke
Right. And airlines reportedly fell, but there are no numbers in the text, so I'd not read much into that.
Il Polso
- Tokyo and Seoul reopened for the first time since Hamas's weekend attack on Israel, and traders came back to a world that had changed over several days.
- Smaller South Korean defense firms surged, with Victek climbing nearly 30% and Firstec jumping 20% as money rushed toward electronic warfare and guided munitions.
- Kawasaki Heavy Industries led Japan's defense gains at roughly 6.5%, drawing investors toward makers of aircraft and naval vessels.
- Israel's declaration of war and its strikes on Gaza keep the conflict's trajectory uncertain, and airline shares slid in the same markets.
- Investors are now watching whether the rally holds as the conflict develops and regional security fears grow.
When markets in Tokyo and Seoul reopened after a weekend shaken by Hamas's surprise attack on Israel, investors who had spent days absorbing the news turned quickly toward the businesses that build weapons and warships. Israel's declaration of war and its retaliatory strikes on Gaza formed the backdrop, and in both countries defense makers rose sharply, with smaller firms leading the gains. It is a familiar pattern in human affairs: when the threat of violence rises far away, capital moves toward those who prepare for it, even as airlines and other businesses dependent on calm are left to absorb the unease.
When Tokyo and Seoul opened for trading on Tuesday, it was the first session since the weekend, and the first since Hamas launched what the source describes as a surprise and unprecedented attack on Israel. Both markets had been closed Monday for a public holiday, so investors arrived with several days of news piled together. Israel answered by declaring war and launching a wave of retaliatory strikes on the Gaza Strip, the territory Hamas governs. That was the backdrop for the opening bell in Asia.
In South Korea the sector's largest names moved by different amounts. Hanhwa Aerospace, which builds artillery and air defense systems, gained 2.23%, while Korea Aerospace Industries, or KAI, which produces fighter jets for the military, rose 4.07%. The smaller firms moved far more sharply. Victek, a maker of electronic warfare systems, jumped almost 30%, and Firstec, which manufactures fire control systems and guided munitions, rose 20%.
In Japan, Kawasaki Heavy Industries climbed almost 6.5%, the largest gain in that market. The company builds aircraft and naval vessels for the Self Defense Forces. The article also recalls Prime Minister Fumio Kishida's pledge at a troop review to consider "all options," including the ability to strike enemy bases. Airline shares slid in the same markets, though the source gives no figures for them. What comes next depends on whether the rally holds as the conflict develops and regional security concerns deepen.
When Tokyo and Seoul opened for trading on Tuesday, it was their first session since the weekend, and the first since Hamas attacked Israel. Both markets had been closed Monday for a public holiday, so investors in Japan and South Korea faced several days of news at once. Defense stocks in both countries rose sharply.
Hamas launched what the source describes as a surprise and unprecedented attack on Israel on Saturday. Israel responded by declaring war and launching a barrage of retaliatory strikes on the Gaza Strip, which the militant group rules. That was the backdrop for the opening bell in Asia.
In South Korea, the two biggest names in the sector moved up by different amounts. Hanhwa Aerospace, which builds artillery and air defense systems, gained 2.23%. Korea Aerospace Industries, known as KAI, rose 4.07%. KAI produces fighter jets and aviation platforms for the South Korean military.
The smaller companies moved much more. Victek, a maker of electronic warfare systems, jumped almost 30%. Firstec, which manufactures fire control systems and guided munitions, rose 20%.
In Japan, the largest gainer was Kawasaki Heavy Industries, which climbed almost 6.5%. The company makes aircraft and naval vessels for Japan's Self Defense Forces.
The article also recalls a recent signal from Tokyo. At his first troop review, held at the Japan Ground Self-Defense Force's Camp Asaka in Tokyo, Prime Minister Fumio Kishida renewed his pledge to consider "all options," including acquiring the capability to strike enemy bases. The accompanying photograph, from a November 2021 review, shows Kishida walking past a Type 19 155 mm wheeled self-propelled howitzer and a Type 12 surface-to-ship missile.
The summary accompanying the piece notes that airline shares slid in the same markets, though the source text gives no figures for them. What to watch next is whether the defense rally holds as the conflict between Israel and Gaza develops and as regional security concerns grow.
Citazioni salienti
Kishida renewed his pledge to consider "all options," including acquiring enemy base strike capability.— Japanese Prime Minister Fumio Kishida, at his first troop review
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