By Kosaku Narioka and Yang Jie
Terra Drone's shares surged after the drone maker secured a deal to mass produce interceptor drones for a Japanese defense agency, reflecting Tokyo's push to bolster domestic drone capabilities amid growing security concerns.
Shares rose 21% to their daily limit of 17,050 yen, equivalent to $107.09, on Wednesday in Tokyo.
The Japanese drone maker said after Tuesday's market close that its interceptor drone Terra B1 passed a demonstration test under a program conducted by Japan's Acquisition, Technology & Logistics Agency and advanced to the next phase of mass production.
The agency said it signed a mass procurement contract with Terra Drone, but didn't disclose details of the agreement.
