Asian stocks rose sharply on Thursday, with South Korea’s KOSPI rebounding from steep losses as a mix of bargain buying and positive cues from Wall Street aided regional markets.
Regional stocks were still nursing steep losses this week as risk appetite was battered by the ongoing U.S.-Iran conflict, which showed few signs of easing.
Chinese stocks rose after Beijing set a slightly weaker growth target for 2026, but pledged to continue supporting the economy with fiscal stimulus.
Asian stocks took a positive lead-in from Wall Street, where gains in technology shares helped spur a broader recovery from this week’s losses. A batch of strong economic readings also boosted sentiment towards the U.S. economy.
But S&P 500 Futures fell 0.2% by 22:20 ET (03:20 GMT), amid conflicting reports over whether Iran had reached out to the U.S. over ending hostilities. A sustained increase in oil prices also kept markets on edge over the conflict’s economic impact.
KOSPI rebounds over 10% on chipmaker recovery
South Korea’s KOSPI was the best performer in Asia, rebounding as much as 12% from two days of deep losses.
The index was aided by a host of dip-buying, especially into the chipmaking and auto sectors that had fueled its rally to record highs last week.
Samsung Electronics Co Ltd (KS:005930), SK Hynix Inc (KS:000660), and Hyundai Motor (KS:005380)– three of the largest stocks in South Korea– rallied between 11% and 13%, recovering some of their recent losses.
South Korean markets had tumbled in the past two sessions, as an extreme deterioration in risk appetite, following the outbreak of the U.S.-Iran war, sparked a wave of liquidations in long positions.
Local stocks were also vulnerable to profit-taking after rallying as much as 50% so far in 2026.
Chinese shares rise as Beijing sets softer growth target, pledges stimulus
China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes rose 1.3% and 0.8%, respectively, while Hong Kong’s Hang Seng added 1%.
Beijing on Thursday set a 2026 gross domestic product target of 4.5% to 5%, slightly lower than the 5% growth China has achieved for the last three years. The target is China’s weakest annual growth target since 1991.
Premier Li Qiang, in his government work report at the opening session of the National People’s Congress, set a 2026 consumer price index target of 2%, and a fiscal budget deficit of 4% of GDP.
Qiang vowed to increase government investment in a host of new technologies and industrial sectors, while also pledging to further support consumer spending. China also outlined plans to increase military spending by 7%.
ING analysts said the economic target offered few surprises, especially as Beijing works to shore up laggard domestic consumption, which has been a major drag on economic growth in recent years.
Broader Asian markets were largely positive on Thursday, as they recovered a measure of steep losses seen earlier in the week.
Japan’s Nikkei 225 and TOPIX indexes rose 1.5% and 1.8%, with local bank stocks rebounding sharply in line with an overnight rise in U.S. Treasury yields.
Singapore’s Straits Times index rose 0.7%, while India’s Nifty 50 index added 0.4% in morning trade.
Australia’s ASX 200 rose 0.3%. But bigger gains in the ASX were held back by losses in major mining stocks including BHP Group Ltd (ASX:BHP) and Rio Tinto Ltd (ASX:RIO), which both traded ex-dividend.
Source: Investing