Asian defense stocks surge amid India-Pakistan tensions
Shares of Asian defense and aerospace companies inched higher, while many US and European defense firms saw their share value drop as tensions between India and Pakistan rise.
Asian defense shares rejoiced with these developments, with South Korean firms Hanwha Aerospace and HLB Co gaining 8.8% and 2.4% on Wednesday morning, respectively, while Japan-based Mitsubishi Heavy shares climbed 1.9%, News.Az reports, citing foreign media.
South Korean HD Hyundai Heavy Industries Co. shares jumped 1.7%, Singapore Technologies Engineering 1.3%, and China-based AVIC Xi’an Aircraft Industrial Corporation 1%.
In contrast, US and European defense firms saw a sharp drop, reflecting a drop in investor sentiment.
While shares of some firms such as Harris Technologies, Lockheed Martin, Boeing, and Northrop Grumman advanced, US-based General Dynamics' shares lost 0.4%, RTX Corporation 0.5%, and French firm Safran 0.5%. The share value of German defense firm Rheinmetall AG also plunged 0.7%, and European aviation company Airbus 1.3%.
At the same time, UK-based firms Rolls-Royce and BAE Systems’ shares fell 2% and 2.3%, respectively, while German firm Lufthansa Lufthansa 3.9%, and France-based Dassault Aviation 5.2%.
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