Shares of Asian shipbuilders and shipping firms rallied on expectations that European countries may seek seaborne sources of natural gas as tension escalates with Russia over Ukraine.
- Russia is Europe’s top gas supplier, with typically about a third of flows traveling through Ukrainian pipelines.
*Bloomberg chart on tankers demand
For Europe to boost liquefied natural gas imports from other countries like the U.S., it would need more tankers to ship the fuel by sea.
Korean shipbuilders and their suppliers were the biggest winners on the country’s benchmark equity index.
Companies that manufacture engine and engine components for ships, jumped more than 22%.
All major Korean shipyards soared including;
- Daewoo Shipbuilding & Marine Engineering Co.
- Korea Shipbuilding & Offshore Engineering Co. and
- Hyundai Heavy Industries Co.