Asian defense makers rallied on Monday as the latest flare‑up between the United States and Iran lifted risk‑off sentiment. Japan’s Mitsubishi Heavy Industries led the charge, gaining roughly 4%, while Kawasaki Heavy and IHI posted modest lifts between 0.1% and 2%. In China, CSSC Holdings added 0.5% and Avic Shenyang Aircraft jumped 4%. AECC Aviation Power surged 6% on the back of the same sentiment.

Down under, Australian shipbuilder Austal Ltd spiked 4% as investors priced in potential export orders. The rally unfolded after the United States and Israel struck Iranian targets over the weekend, prompting Tehran to fire on Israel and several U.S.-aligned states. President Donald Trump warned Washington would keep hitting Iran until its objectives are met, while Iran’s security chief Ali Larijani dismissed any U.S. negotiation overtures.

Analysts note that heightened geopolitical risk typically translates into larger procurement budgets, lifting share prices for arms makers. Japanese firms have logged solid gains in recent months, buoyed by Tokyo’s pledge to boost defense spending The current rally therefore underscores a short‑term earnings tailwind for the sector, reinforcing its appeal to risk‑averse capital.