Asian military industry at the peak; Europe is looking for new weapons

Japan and South Korea’s defensive stocks have reached their highest record, as European countries are expected to buy more military equipment from Asia after US President Donald Trump’s threat to dismantle US security umbrella.

Hanova Airpis, the largest artillery producer in South Korea, has increased by 5 percent this year, while Mitsubishi’s heavyweight manager’s largest defense contractor has grown by 5 %.

Increasing the German military budget; Asia’s golden opportunity

The shares increased by 4.9 percent and 4.9 percent, respectively, following the fact that German lawmakers agreed to increase infrastructure and defense costs last week, according to the Financial Times.

While German lawmakers will vote on Tuesday about the € 5 billion program, Wendy Pan, an analyst at McCawar in Tokyo, said, “After the agreement in Germany, feelings about the defense sector are very strong.”

The growth on Monday set a new record for East Asian defense shares, with the value of Hanova IRUSPIPS and Mitsubishi’s heavy industries more than five times since the end of the year, as the Ukrainian war has increased global weapons.

Seoul’s upright to conquer the European market

Hyundai Rothm’s shares in South Korea have increased by 6.5 percent this year, and the company expects to receive equipment contracts from Poland and Romania in the coming weeks. Korea Air Industries, a fighter jet manufacturer, has grown by about 3.5 percent in the year.

“South Korean companies can receive up to $ 5 trillion ($ 2 billion), equivalent to one -fourth of the non -American western weapons costs,” said Dongheo Jung, an analyst at Mira Asceturithis.

“Europe has had problems after Russia’s widespread attack on Ukraine to expand defense production,” said Ion Huang, Vice President of Nomura in the Industry.

Trump has increased the pressure and has called on NATO to raise its military spending to 5 % of GDP and threatened to abandon his country’s allies without support.

While Europe reduced its military production after the collapse of the Soviet Union, South Korea maintained its production ability to counter North Korea’s threat and was able to produce high -cost and low -cost weapons.

South Korea has become one of the top five weapons exporters in the world since the beginning of the Ukrainian war. “Economic scales are quite different,” said Huang about the military supply chain in South Korea.

The offspring giant; Without export but with high capacity

Japanese defense companies make up less than one percent of global weapons exports and have been away from military purchasing processes for decades and have little business experience due to post -war peace policies. But these companies are expected to benefit from increasing global demand for military equipment, as Japan canceled the long -term ban on weapons exports in the year, and facilitated these laws at the end of the year.

Japan’s ICI, a rocket and jet engine manufacturer, increased by 4.9 percent this year, while Kawasaki heavy industries and Japan Steel Werks, artillery producer, had a 5.5 percent increase in stock value.

“The possible increase in German defense budget is significant,” Wendy Pan of McCavari also told the Financial Times.

“I don’t think the current German defense industry has enough capacity to support this development unless it increases its production capacity or rely on cooperation with countries such as Japan,” he said.

Radar Systems at the focus

Japan’s Mitsubishi Heavy Industries Company (MHI) is currently participating in the next -generation European fighter program and operates alongside the British British and Leonardo Italy. The company is also competing for the Australian Navy’s construction contract, while South Korea’s Hanoa announced on Tuesday that it had purchased a significant stock from Australian Australian Shipping Company.

Asian defense groups are increasingly commenting on their export opportunities.

At a recent meeting, Mitsubishi Electric increased the forecast of defense orders for year 2 from $ 2 billion to $ 2 billion ($ 2 billion) and introduced radar systems as a key opportunity.

“Japan is a rare case that has a developed weapons industry, but has almost no export,” said Edward Borlet, an analyst at CLSA.

Intensifying pressure on Japan following Trump’s threats

Japan has pledged to raise its military spending to 5 % by year 2, and the government increased the maximum profit margin of defense contractors from 2 % to 5 % in the year.

After Trump questioned the mechanism in the bilateral security pact Japan and the United States, Tokyo was put under pressure to increase military spending.

In recent weeks, the stocks of European defense companies have grown dramatically in the pursuit of new commitments to increase military spending on the continent. Rhine Mattal’s largest defense company has risen by 4.9 percent this year, while the value of the BIA system has grown by 4.9 percent.

The end of the message