The end of the war is expected to boost the prospects of orders, and South Korean defense stocks rise.

On Wednesday, South Korean defense stocks outperformed the overall Asian stock market, with the market betting that Middle Eastern clients will resume their weapons orders after the end of the Iran conflict. Gary Tan, manager of Quan Quan Global Investment Fund, said: "Although the market expects the Iran conflict to ease, investors are positioning themselves for long-term security and energy themes, leading to an increase in defense stocks. The market seems skeptical about a quick resolution to the conflict, so confidence in the allocation of defense and energy sectors remains high." Bloomberg Intelligence analyst Eric Zhu said: "If the US withdraws troops from Iran, Gulf countries may need to take on more defense responsibilities, including possibly reopening the Strait of Hormuz. This could drive procurement demand in the region, with South Korea's defense system expected to benefit." Individual stock performances include LIG Nex1 rising by up to 28% on the South Korean exchange, Hanwha Systems up by 19%, Korean Aerospace Industries up by 15%, Hyundai Rotem up by 13%, Firstec up by 10%, Korean Air up by 9.2%, and Poongsan up by 8%. South Korean defense stocks are one of the best-performing sectors in the MSCI Asia Index.