Asian defense stocks rallied for a second straight session Tuesday, even as the region traded mixed, with investors assessing geopolitical risks after the U.S. attack on Venezuela and capture of ousted leader Nicolas Maduro.
The Nikkei 225 popped 685.25 points, or 1.3%, to 52,518.08.
Japanese defense firm Kawasaki Heavy Industries rose almost 6%, while IHI added 3.66%.
Hong Kong’s Hang Seng index leaped 363.21 points, or 1.4%, to 26,710.45.
Shares of South Korea’s Korea Aerospace jumped as much as 11% before paring gains to trade over 9% higher, while Poongsan jumped more than 8%. Hanwha Aerospace climbed 0.99%.
Singapore banks capped 2025 with another record year, as earnings came in stronger than expected and helped financial stocks rise more than 20% despite bouts of market volatility, said OCBC analysts on Tuesday.
Looking ahead to 2026, bank profits are expected to hold steady even as lending margins ease, supported by strong wealth inflows and healthy returns on equity.
However, the bank cautioned that risks remain. Singapore’s market is dominated by mature, value-heavy companies, which limits its exposure to the faster growth typically seen in technology stocks.
A regional slowdown—particularly in China—would weigh on external demand, while a spike in oil prices, given the still-fluid situation in Venezuela, could push up operating costs
Australian steelmaker BlueScope Steel surged more than 20% after it was confirmed that conglomerate SGH had submitted a non-binding indicative offer alongside American steel producer Steel Dynamics to acquire the company. The deal would value BlueScope at about $9 billion U.S..
In other markets
The CSI 300 in Shanghai added 72.95 points, or 1.6%, to 4,790.69.
In Korea, the Kospi gained 67.96 points, or 1.5%, to 4,525.48.
In Taiwan, the Taiex hopped 471.26 points, or 1.6%, to 30,576.30
In Singapore, the Straits Times Index moved ahead 59.47 points, or 1.3%. to 4,739.07.
In New Zealand, the NZX 50 progressed 76.35 points, or 0.6%, to 13,663.58.
In Australia, the ASX 200 lost 45.88 points, or 0.5%, to 8,682.75.
