BANGKOK (AP) — Shares advanced in Asia on Thursday after a rebound on Wall Street, as South Korea’s Kospi took back much of its historic losses from a day earlier.
The gains overnight in the U.S. appeared to clear the air, at least temporarily.
“Just overall, if we look at the markets globally, we are seeing a bounce-back today," said Neil Newman, managing director of Astris Advisory Japan. "It’s broadly across Asia at the moment. ... So this is a broad-based rebound and I think it does certainly indicates a positive sentiment returning.”
However, U.S. futures fell back, with the contract for the Dow Jones Industrial Average losing 0.3%, while that for the S&P 500 edged 0.2% lower.
In Seoul, the Kospi shot up 11.4% to 5,682.16 as investors hunted bargains, triggering temporary trading halts, and the government announced emergency measures for the economy after the benchmark fell by the most ever in a single day on Wednesday. President Lee Jae Myung urged officials to activate an emergency financial package worth 100 trillion won ($68.5 billion) aimed at calming market volatility.
Officials were discussing various measures to curb sharp increases in fuel prices, said Finance Minister Koo Yoon-cheol, including possible price caps. They also were monitoring for irregular market activity such as potential collusion among gas stations.
Tokyo's Nikkei 225 index gave back some early gains but was up 2.4% at 55,555.61.
In Hong Kong, the Hang Seng climbed 1% to 25,474.61 after Chinese Premier Li Qiang opened the annual session of the National People's Congress with a report that set the annual target for economic growth this year to 4.5% to 5%. A draft budget put the increase in military spending at 7%, down from 7.2% in recent years.
The government pledged to support the sluggish domestic economy and spur more consumer spending, but did not announce any major new stimulus.
The Shanghai Composite index gained 0.9% to 4,120.90.
In Australia, the S&P/ASX 200 rose 0.4% to 8,940.30, while New Zealand's benchmark rose 0.6%.
Taiwan's main share index gained 2.6%.
Uncertainty about the war in the Middle East has rattled financial markets this week, with most taking their cues from what the price of oil is doing.
U.S. stocks rebounded Wednesday after oil prices stopped spiking and reports gave encouraging updates on the American economy. But crude prices resumed their ascent early Thursday.
Brent crude, the international standard, gained 3.4% to $84.14 per barrel. U.S. benchmark crude jumped 3.8% to $77.51 per barrel.
The S&P 500 rose 0.8% Wednesday, erasing much of its losses since the war with Iran began. The Dow Industrials added 0.5% and the Nasdaq composite climbed 1.3%.
Stocks also got a boost from signs of strength for the U.S. economy, including a report that said growth for U.S. businesses in the real estate, finance and other services industries accelerated last month at the fastest pace since the summer of 2022.
Another report suggested U.S. private sector employers stepped up hiring last month, a potentially hopeful signal for a more comprehensive U.S. government Friday about the overall job market.
Investors are worried over how long the war with Iran could last, how high inflation may go because of more expensive oil and how much damage that might do to corporate profits.
Markets have a history of shaking off military conflicts in the Middle East relatively quickly, though that comes with the caveat that oil prices don’t jump too high. That has some professional investors suggesting patience through the volatility, at least when it comes to financial markets.
On Wall Street, a mix of companies helped drive Wednesday’s rise.
Stocks enmeshed in the crypto industry climbed as bitcoin’s price rebounded back above $73,000. Coinbase Global jumped 14.6%, and Robinhood Markets rallied 8.1%.
Retailers and travel companies strengthened with hopes that a solid economy and an easing for jumps in gasoline prices will mean their customers may have more to spend.
But the biggest push came from Big Tech stocks. Amazon rose 3.9%, and Nvidia added 1.7%. Because they’re among the biggest stocks in the U.S. market in terms of total value, their movements carry more weight on the S&P 500.
Wednesday’s strong reports on the economy were welcome news for the Federal Reserve, whose job it is to keep the U.S. job market healthy and inflation low. The Fed’s job has become more difficult because of the jump in oil prices, which is pushing upward on already high inflation.
In other dealings early Thursday, the U.S. dollar slipped to 157.12 Japanese yen from 157.07 yen. The euro fell to $1.1605 from $1.1636.
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AP Writer Kim Tong-hyung contributed.
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