Shares of South Korean and Japanese defense companies rose sharply in Asia's session after authorities confirmed North Korea launched a ballistic missile that flew over Japanese territory for the first time in five years.
And South Korean President Yoon Suk-yeol said his office is considering stronger sanctions on Pyongyang in light of such continued provocations.
In South Korea, shares of Hanwha Aerospace, an aircraft engine manufacturer, rose more than 3% in the morning session, while Korea Aerospace, which also develops fighter jets, jumped more than 4%.
In Japan, Mitsubishi Heavy Industries, which also makes military machinery through its aircraft, defense and space department, gained more than 3% in Asia's session.
Hosoya Pyro-Engineering, which makes flare bombs and smoke candles for the Japanese self-defense forces, also rose more than 5% in Asia's early session.