Iran Crisis: Global markets see action in these two sectors today, with shares jumping up to 22%. The domestic market will also react on Wednesday.

News Topical, Digital Desk : The domestic stock market was closed on Tuesday, and the impact of the past two sessions will be seen on Wednesday. Uncertainty persists in the market, but some clear signs are visible. Global markets are under pressure, but the defense sector is operating at full speed. Meanwhile, the aviation sector has crashed. It is feared that if the situation worsens in the next 24 hours, similar trends may be seen in the domestic market. The widening scope of the Iran war has positive sentiment for defense companies. Meanwhile, the aviation sector has come under pressure due to the surge in crude oil prices and flight disruptions.

Boom in the defense sector

South Korean defense stocks saw a sharp rise on Tuesday. Investors bought defense stocks as soon as the market opened after a day's holiday. Shares of Hanwha Aerospace, South Korea's largest defense company, recorded a sharp rise of 22%. Shares of Korea Aerospace Industries rose by more than 7%. Shares of Lignex1, a manufacturer of South Korean air defense systems, jumped by a whopping 30%. Shares of Victek, a manufacturer of electronic warfare systems, and Firstec, a manufacturer of anti-aircraft missile components, jumped by more than 20%. Shares of ammunition manufacturer Poongsan rose 14%, while Hyundai Rotem, a manufacturer of K2 main battle tanks, recorded a gain of more than 18%.

However, markets remained under pressure. South Korea's main index, the Kospi, fell nearly 2%, leading the decline in Asian markets.

Earlier on Monday, Germany's Hensoldt and Britain's BAE Systems rose nearly 5% and 6%, respectively, in Europe. In the US, shares of Lockheed Martin and Northrop Grumman rose more than 3% and nearly 6%, respectively.

Pressure on Asian Airlines:

Meanwhile, Asian airline stocks remained under pressure due to the US and Israel's escalating military campaign against Iran. Investors are cautious about the possibility of rising fuel costs due to rising oil prices.

Vanessa Hudson, CEO of Australia's Qantas Airways, said the company has hedged, but a sharp rise in oil prices could have a significant impact on the industry.

On Tuesday, shares of Japan's Japan Airlines fell 3.5% in early trading. Korean Air Lines shares fell nearly 8% when trading resumed after a public holiday. Hong Kong's Cathay Pacific Airways fell more than 2%.

Shares of China's major airlines—Air China, China Eastern Airlines, and China Southern Airlines—fell 3% to 5% in Hong Kong and Shanghai markets.

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