S. Korea's defense stocks surge in response to China Xi's threatening speech

Shares of South Korean jet fighter, aircraft engine, and weapon system manufacturers soared Monday after Chinese leader Xi Jinping threatening announcement.

Xi said that China would never allow any foreign force to bully, oppress, or enslave them in the speech to mark the 100th anniversary of the ruling Communist Party. He added that anyone who tries to do so shall be battered and bloodied

The stern warning pushed defense stocks traded on the Kospi slightly up on Friday and another momentum boost on Monday.

Stocks of Hanwha Aerospace Co., South Korea's only aircraft engine maker, soared 10.42 percent to close at 53,500 won.

It also exhibited an intraday high of 54,500 won, which was its strongest level in nearly five years.

Foreign investors purchased a net 576.2 billion won worth of the stock, while institutional investors bought a net 211.9 billion won.