Global military budgets are surging at a pace unseen since the Cold War, fueling a defense-spending supercycle. NATO allies are aiming to spend up to 5% of GDP on defense by 2035, while Asian powers such as Japan and South Korea are also boosting spending. This environment has been a boon for defense stocks, with South Korea's Hanwha Aerospace rising a spectacular 2,600% since the start of the Russia-Ukraine War, even eclipsing Rheinmetall's 1,700% run.

Is the defense spending supercycle sustainable? And which companies and countries stand to benefit from this surge? Wayne Sanders, senior defense analyst and retired US army colonel, and Eric Zhu, aerospace and defense analyst – both at Bloomberg Intelligence – join John Lee on the Asia Centric podcast. They also discuss the evolving roles of air defense, hypersonics and space in future conflicts.