Shares Of Defense Companies Surge In Japan And South Korea In A Dramatic Way

The latest Asian trading session saw the share prices for the defense companies record a significant rise after alarming news.

The share prices for the defense companies in Japan and South Korea recorded a dramatic rise just as the authorities in the countries shared alarming news involving North Korea.

North Korea tested a Ballistic Missile

The reports started coming in where it was revealed that North Korea had tested a ballistic missile. The launched ballistic missile reportedly flew over the territory of Japan.

The most concerning part of the situation was that North Korea had not attempted something like this in the past five years.

It is now a matter of concern all over the world why North Korea would test a ballistic missile and fly it over Japanese territory in a dramatic manner.

Although there is great panic among the people in Japan and South Korea, the defense companies in both countries seem to be cashing out on this situation.

US Authorities React to the Incident

The authorities in the United States were the first to react to the incident. They called North Korea’s latest act completely dangerous and filled with recklessness.

The authorities condemned North Korea’s move calling it a bad move to cause fear and panic among the people in Japan.

Since the incident, the United States has asked North Korea to refrain from demonstrating such acts and causing fear among people in the neighboring countries.

As per them, such acts are unlawful and tend to destabilize the countries and regions they are posted in.

Japan and South Korea’s Reaction

Fumio Kishida, the Prime Minister of Japan also reacted to the incident, calling it out to be a barbaric move from the North Koreans.

Yoon Suk-yeol, the President of South Korea also recorded his protest against the matter. He demanded stricter sanctions to be implemented on North Korea to stop it from causing such provocations.

Stock Price Surges in South Korea and Japan

Following the incident, the share prices for defense companies in the respective countries have continued to rise.

In South Korea, the share prices for Korea Aerospace recorded a 5.47% surge in the latest trading session. The company is known for developing and manufacturing fighter jets.

In the same session, Hanwha Aerospace saw an over 3% spike in its share prices. The company is known for the manufacturing of engines for aircraft.

Victek has also recorded an over 11% surge in share prices. The company is popular for manufacturing military equipment. The company’s shares have surged to the highest trading level in more than a month.

The share prices for Hosoya Pyro-Engineering have recorded an over 5% surge in the Asian trading session. The share prices for Mitsubishi Heavy Industries have also recorded over a 3% surge in the latest trading session.