Asian shares jump as KOSPI rebounds; bonds slide

TOKYO: Asian shares rallied on Thursday while U.S. Treasuries fell, pointing to a tentative recovery in risk appetite after markets were hit by the escalating war in the Middle East.
South Korea’s KOSPI led regional gains, rebounding sharply after steep losses a day earlier, helped by a recovery on Wall Street. The dollar resumed its advance, while oil and gold traded higher on continued concerns over energy supply.
Chinese equities climbed after Beijing unveiled wide-ranging economic and development targets. In Washington, the U.S. Senate backed President Donald Trump’s military campaign against Iran, suggesting no quick resolution to a conflict that has roiled financial markets, transportation networks and energy production.
“Geopolitical risk can flare up again very quickly, so any early gains we see this morning across Asia-Pacific share markets may not last,” Paco Chow, dealing manager at Moomoo Australia and New Zealand, said in a note. “The outlook will remain cautious until we see oil flows return to normal.”
MSCI’s broadest index of Asia-Pacific shares outside Japan jumped 3.9%. South Korea’s KOSPI surged 11.2%, recovering from what traders described as a historic plunge, while Japan’s Nikkei rose 2.5%.
Benchmark U.S. Treasury yields rose as bond prices slipped. The 10-year yield climbed 3.9 basis points to 4.121%, while the 30-year yield added 4.4 basis points to 4.7607%. Yields move inversely to prices.
Iran launched a wave of missiles at Israel early on Thursday, just hours after moves to halt the U.S. air assault were blocked in Washington.
U.S. Energy Secretary Chris Wright told Fox News on Wednesday the impact of the conflict on energy markets would be a “bump in the road” and a “small price” to pay for U.S. military goals. International Monetary Fund Managing Director Kristalina Georgieva warned the world could be entering a prolonged period of flux as hostilities test economic resilience.
Oil extended gains on supply concerns and has risen about 16% since the war began. U.S. crude rose 3.94% to $77.60 a barrel, while Brent climbed 3.5% to $84.25.
Spot gold rose 0.78% to $5,175.47 an ounce.
China set its 2026 growth target at 4.5%–5%, a slight downgrade from the 5% pace achieved last year, and released its 15th five-year plan, pledging investments in innovation and high-tech industries and a “notable” increase in household consumption. China’s CSI300 gained 1.4% and the Shanghai Composite added 1%.
The dollar index rose 0.19% to 98.99. The euro slipped 0.21% to $1.1609, while the yen weakened 0.06% to 157.15 per dollar. Bitcoin fell 0.73% to $72,807.71 and ether declined 0.66% to $2,136.43.