Asian defense stocks continue rally as tensions in Venezuela persist and markets are mixed

Asian defense stocks rebounded for a second straight session on Tuesday, even as the region performed mixed as investors weighed geopolitical risks after the United States. attack on Venezuela and the capture of deposed leader Nicolas Maduro.

Japanese defense company Kawasaki Heavy Industries rose 3.53%, while IHI added 3.23%. Shares of South Korean company Korea Aerospace jumped 11%, while Poongsan jumped more than 6%. Hanwha Aerospace climbed 0.59%.

The reference of Japan Nikkei 225 The index rose 0.69%, while the Topix rose 1.3% to reach a record high. South Korea Kospi remained stable and the small-cap Kosdaq fell 0.43%.

Australia ASX/S&P 200 slipped 0.42%.

that of Hong Kong Hang Seng Index added 1.6%, led by gains in the basic materials and real estate sectors. Among the top gainers on the index were China Hongqiaoone of the world’s largest producers of aluminum, which grew by 7.89%, and Zijin Mining Groupwhich increased by 5.57%.

The continental CSI 300 added 0.47%.

Singapore’s benchmark STI index rose 0.7% to hit a new record high. Singapore’s banks closed out 2025 with another record year, with profits coming in higher than expected and helping financial stocks rise more than 20% despite bouts of market volatility, OCBC analysts said on Tuesday. Looking ahead to 2026, bank profits are expected to remain stable even as credit spreads decline, supported by strong wealth inflows and good returns on equity.

The bank, however, warned that risks remain. The Singapore market is dominated by mature, highly value-oriented companies, limiting its exposure to the faster growth typically seen in technology stocks. A regional slowdown, particularly in China, would weigh on external demand, while a surge in oil prices, given the still fluid situation in Venezuela, could push up operating costs.

U.S. stock futures were flat in early Asian hours.

In the United States, stocks rose overnight, even after attack on Venezuelabecause crude oil prices advance and investors are betting that this action will not lead to broader geopolitical conflict.

THE Dow Jones Industrial Average gained 594.79 points, or 1.23%, to close at 48,977.18. The 30-stock index also hit a new all-time high during the session. THE S&P500 advanced 0.64% and ended at 6,902.05. THE Nasdaq Composite added 0.69%, settling at 23,395.82.

— CNBC’s Liz Napolitano, Fred Imbert and Sean Conlon contributed to this report.