Asia-Pacific markets rose on Thursday, with South Korea’s Kospi index rebounding from its plunge this week amid the United States-Israel-Iran conflict.
By 11:45 am AEDT (12:45 am GMT), Australia’s S&P/ASX 200 gained 0.4% to 8,933.10, and Japan’s Nikkei 225 was up 4.2% to 56,502.25. The Kospi 200 increased 12.2% to 849.28, with the broader Kospi Composite rising 11.4%.
The Kospi Composite posted its worst ever single-day decline yesterday, closing 12.1% lower. The Korea Exchange activated a 20-minute circuit breaker after losses crossed 8%, temporarily suspending trading.
Around 98% of South Korea’s fossil fuel is imported, with about 70% of its oil needs deriving from the Middle East. The Strait of Hormuz, where roughly one-fifth of global oil flows would typically transit, remains closed by Iran amid the conflict.
China has lowered its 2025 gross domestic product target to 4.5-5%, meanwhile, as the country’s deflationary pressures continue. Its target has been roughly 5% for the past three years.
Australia’s seasonally adjusted goods trade surplus narrowed by A$742 million to $2.631 billion in January, according to the Australian Bureau of Statistics (ABS). Exports fell by $415 million (0.9%), driven by declines in other rural goods, while imports rose $328 million (0.8%) on higher non-monetary gold inflows.
Household spending rose 0.3% in January 2026 following a 0.5% fall in December and a 1.0% rise in November, the ABS said in a separate release. Spending was up 4.6% year-on-year.
In the United States, the S&P 500 climbed 0.8%, the Dow Jones Industrial Average rose 0.5%, and the Nasdaq Composite was up 1.3%. Gains were supported by better-than-expected private sector hiring and services activity data for February.
Brent crude prices closed flat at US$81.40 per barrel after swinging between gains and losses during the session. Spot gold was up 1.2% to $5,146.76 per ounce.
The Shanghai Composite fell 1% to 4,082.47 yesterday, and the CSI 300 shed 1.1% to 4,602.62.
Hong Kong’s Hang Seng Index dropped 2% to 25,249.48. India’s BSE Sensex lost 1.4% to 79,116.19.
European markets rose, with the United Kingdom’s FTSE 100 up 0.8% to 10,567.65. Germany’s DAX climbed 1.74% to 24,205.36 and France’s CAC 40 increased 0.8% to 8,167.73.
