Asian stock market today: On optimism about a de-escalation in the US-Iran war, the Asian stock market witnessed strong buying in the early morning session on Thursday. South Korea’s Kospi soared more than 12% on Thursday, rebounding sharply from its steepest single-day fall and putting it on track for its strongest session, according to LSEG data.
Index heavyweights SK Hynix and Samsung Electronics rallied over 15% and 14%, respectively. Meanwhile, the South Korean won appreciated 0.14% against the US dollar, last trading at 1,460.60.
The small-cap Kosdaq advanced more than 11%. The benchmark had slumped 12% on Wednesday, marking its worst-ever daily decline. The sell-off earlier this week was largely triggered by a sharp rise in oil prices linked to escalating conflict in the Middle East, which heightened concerns about inflation and the potential for slower economic growth.
Meanwhile, Japan’s Nikkei 225 surged 4%, rebounding after a 3% decline in the previous session.
Australia’s S&P/ASX 200 opened 0.38% higher at the start of trading. Futures for Hong Kong’s Hang Seng Index were trading at 25,534, above the prior close of 25,249.48.
Buzz for de-escalation in US-Iran war
“The optimism follows a notable reversal in global market sentiment, where major indices have rebounded from their recent bearish phase amid growing hopes of de-escalation in the ongoing Middle East tensions,” said Hariprasad K, SEBI-registered Research Analyst & Founder of Livelong Wealth.
Ponmudi R, CEO of Enrich Money, believes that despite pockets of global strength, domestic sentiment remains fragile and highly sensitive to geopolitical developments.
“On the global front, US markets ended the previous session on a firm note, while South Korea’s Kospi index is trading sharply higher, gaining more than 10%, offering some supportive external cues. Volatility is therefore expected to remain elevated, with markets likely to trade cautiously and within a defined range until clearer macro signals or any easing in geopolitical tensions emerges,” Ponmudi added.
US stock market update
ended higher on Wednesday after a media report indicated that Iran had shown willingness to engage in talks, while President Donald Trump pledged to stabilize oil markets, easing investor concerns over the escalating Middle East tensions.
Technology stocks attracted renewed buying interest, driving the Nasdaq up 1.29% and keeping the tech-heavy benchmark in positive territory since the U.S.-Israeli strike on Iran that sparked the regional conflict. The S&P 500 hovered near its all-time closing peak reached in January, supported as well by encouraging U.S. economic data.
The advanced 238.14 points, or 0.49%, to close at 48,739.41. The S&P 500 climbed 52.87 points, or 0.78%, to 6,869.50, while the Nasdaq Composite surged 290.79 points, or 1.29%, to finish at 22,807.48.
Technology shares lifted the broader market, led by gains in chipmakers. Micron Technology and Advanced Micro Devices each surged more than 5%, while Broadcom and Nvidia rose over 1% each.
(With inputs from agencies)
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.