Australia, Japan Seal $6.5B warship deal; Mitsubishi Heavy shares rise on 3 Mogami frigates order

Japan and Australia finalized a roughly $6.5 billion deal for Japan to build three general-purpose frigates for Australia — Japan’s first-ever warship export project. The contract lifted shares of Mitsubishi Heavy Industries, Japan’s largest defense contractor, nearly 4% on the day as markets priced in increased revenue and order visibility for defense-related suppliers. The milestone could boost sentiment toward Japanese defense and industrial equities, signal deeper defense-industrial cooperation between Tokyo and Canberra, and pave the way for follow-on export opportunities. Broader market impact appears sector-specific rather than marketwide.