Rising Indo-Pacific defence budgets offer new investment opportunities

The Indo-Pacific region is at the beginning of a rearmament drive. The area faces security challenges, including China’s actions in the South and East China Seas and nuclear risks on the Korean Peninsula. Amid these events, the US has called on its allies to contribute more to their defences, increasing investor interest in Indo-Pacific defence stocks. Defence budgets in the region have the potential to grow by huge amounts. HANetfs’ analysis shows that mature economies (Japan, South Korea, Australia, Taiwan and Singapore) could spend $448bn more on defence, if they increased their burden to...