ISTANBUL

Shares of Asian defense and aerospace companies inched higher, while many US and European defense firms saw their share value drop as tensions between India and Pakistan rise.

India on late Tuesday launched “Operation Sindoor” on cities in Pakistan and Pakistan-administered Kashmir, saying "nine terrorist infrastructure” sites were targeted.

This came after an attack by unidentified gunmen killed 26 people in Pahalgam, Indian-administered Kashmir, on April 22. India blamed Pakistan, which denied any involvement.

Pakistan said six locations were hit, and that a least 31 people were killed. It has called it an “act of war” and warned of a “befitting reply.”

After the strikes, Pakistan said it had downed five Indian fighter aircraft, including the French Rafales. It is said to have used Chinese JF-17 and JF-10 jets to shoot down the Indian aircraft.

New Delhi has yet to respond to the Pakistani statement on downing Indian aircraft.

Asian defense shares rejoiced with these developments, with South Korean firms Hanwha Aerospace and HLB Co gaining 8.8% and 2.4% on Wednesday morning, respectively, while Japan-based Mitsubishi Heavy shares climbed 1.9%.

South Korean HD Hyundai Heavy Industries Co. shares jumped 1.7%, Singapore Technologies Engineering 1.3%, and China-based AVIC Xi’an Aircraft Industrial Corporation 1%.

In contrast, US and European defense firms saw a sharp drop, reflecting a drop in investor sentiment.

While shares of some firms such as Harris Technologies, Lockheed Martin, Boeing, and Northrop Grumman advanced, US-based General Dynamics' shares lost 0.4%, RTX Corporation 0.5%, and French firm Safran 0.5%. The share value of German defense firm Rheinmetall AG also plunged 0.7%, and European aviation company Airbus 1.3%.

At the same time, UK-based firms Rolls-Royce and BAE Systems’ shares fell 2% and 2.3%, respectively, while German firm Lufthansa Lufthansa 3.9%, and France-based Dassault Aviation 5.2%.