Asia report: Defence plays lead gains across the region

About this update from Property For Industry Limited

Defence names extended gains for a second session, with Japan’s Kawasaki Heavy Industries rising almost 6% and IHI adding 3.66%.In South Korea, Korea Aerospace surged as much as 11% before paring gains to trade more than 9% higher, while Poongsan jumped over 8% and Hanwha Aerospace edged up 0.99%.Patrick Munnelly, market strategy partner at TickMill, said that “despite ongoing geopolitical tensions, including the situation in Venezuela, investors continue to pour money into stocks, extending a three-year bull market fuelled by enthusiasm for technology and artificial intelligence (AI).”Equities rise across Asia Japanese equities led regional advances, with the Nikkei 225 climbing 1.32% to 52,518.08, supported by sharp gains in Hitachi, up 7.44%, Mitsubishi Materials, which rose 7.29%, and DOWA Holdings, up 6.41%.The broader Topix index gained 1.75% to 3,538.44. Munnelly noted that “Asian markets hit new heights, driven by a strong rally in Chinese tech stocks, as investors turn their attention to the region's more attractive valuations,” adding that markets have “rebounded strongly from their April lows, buoyed by optimism about AI-driven growth and supportive measures like Federal Reserve rate cuts.”Mainland Chinese markets also moved higher, with the Shanghai Composite rising 1.5% to 4,083.67, driven by strong performances from Shanxi LuAn Chemical Technology, which surged 10.14%, Guangxi Radio and Television Information Network, up 10.11%, and Xinjiang Tianye, which gained 10.06%.The Shenzhen Component added 1.4% to close at 14,022.55.According to Munnelly, “Shanghai's stock market was on track to close at its loftiest level since 2015,” while “the MSCI Asia Pacific Index advanced 1.1%,” underlining the strength of the regional rebound.Hong Kong stocks advanced, with the Hang Seng Index up 1.38% at 26,710.45.China Hongqiao Group climbed 6.14%, JD Health International gained 5.41%, and Ping An Insurance rose 4.96%, contributing to broad-based gains across the market.Munnelly highlighted that “an index tracking Hong Kong-listed Chinese tech companies surged to its highest point since November,” and added that “even with the recent surge, Asian stocks remain considerably more affordable than their US tech counterparts,” noting that the MSCI Asia Pacific Index trades on a price-to-earnings ratio of 15, compared with 22 for the S&P 500 and 25 for the Nasdaq...

View stock analysis, news, and events for Property For Industry Limited