Hanwha Aerospace's stock price surged over 6% in early trading, surpassing 1 million won, driven by escalating geopolitical tensions in the Middle East and a strong performance in U.S. defense stocks.
As of 9:38 a.m. on July 24, Hanwha Aerospace was trading at 1,016,000 won, up 58,000 won (6.05%) from the previous trading day. Other defense stocks also showed strength, with LIG Defense and Aerospace rising 6.25% and Hyundai Rotem increasing by 2.52%.
Investor sentiment improved following a strong earnings report from Lockheed Martin, a leading U.S. defense contractor, which exceeded market expectations for both second-quarter earnings per share (EPS) and revenue, while also raising its annual guidance. Lockheed Martin's stock jumped 10.54% as a result.
RTX also raised its annual outlook based on strong demand for commercial aircraft maintenance and military equipment, seeing a 7.27% increase in its stock. Other major defense companies, including L3 Harris Technologies (up 5.09%), GE (up 2.29%), and Howmet Aerospace (up 2.28%), also experienced gains.
The military tensions in the Middle East have further fueled investor interest in defense stocks. The Houthi rebels in Yemen attacked two Saudi oil tankers in the Red Sea and declared a maritime blockade, while U.S. President Donald Trump warned of a tough response to Iran, heightening geopolitical risks. Additionally, attacks on oil tankers in the Black Sea and Sea of Azov have raised concerns about oil supply disruptions, causing international oil prices to spike by over 7% during trading.
Analysts believe that the solid performance of U.S. defense companies will positively impact domestic defense stocks. Both Lockheed Martin and RTX have raised their annual guidance alongside strong second-quarter results, and demand for missile defense systems like the Patriot and THAAD has led to record-high order backlogs. The market anticipates that the ongoing trend of increased global defense spending will continue to support export momentum for domestic defense firms.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.