SEOUL, January 09 (AJP) - Asian equities finished strong on Friday, with South Korean stocks extending gains as defense shares surged on expectations of increased military spending following remarks by Donald Trump.
In Seoul, the benchmark KOSPI rose 0.8 percent to close at 4,586.3, supported by sharp rallies in defense-related stocks. The tech-heavy KOSDAQ also finished higher, gaining 0.4 percent to 947.9.
Defense stocks led the market after Trump outlined plans to significantly raise U.S. defense spending, fueling optimism over stronger global demand for military equipment. Hanwha Systems surged 27.5 percent to 76,900 won ($52.7), while Hanwha Aerospace climbed 11.4 percent to 1,214,000 won, marking some of the strongest performances on the main board.
The rally followed a strong rebound in U.S. defense stocks overnight after Trump’s remarks. Shares of major U.S. contractors, including Lockheed Martin, RTX and General Dynamics, rose in New York trading on expectations of larger government contracts, a move that carried over into Asian markets and supported buying in Korean defense shares.
Automakers also posted solid gains. Hyundai Motor jumped 7.5 percent to 366,000 won, while Kia rose 6.7 percent to 133,200 won, as investors continued to favor globally competitive exporters.
Among heavyweight technology shares, Samsung Electronics edged up 0.1 percent to 139,000 won, while SK Hynix fell 1.6 percent to 744,000 won, underperforming the broader market amid profit-taking.
Entertainment stocks weakened amid lingering uncertainty over overseas content demand. YG Entertainment slipped 1.5 percent to 67,200 won, SM Entertainment fell 2.7 percent to 114,700 won, Hybe declined 1.34 percent to 331,000 won, and JYP Entertainment dropped 2.4 percent to 69,800 won.
The Korean won weakened against the U.S. dollar, closing at 1,458.7 per dollar, tracking broader dollar strength in regional markets.
Elsewhere in Asia, Japan’s Nikkei 225 rose 1.61 percent to 51,939.9, while China’s Shanghai Composite Index advanced 0.9 percent to 4,120.4, as regional sentiment improved.
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