Asian equities rebounded strongly after three days of heavy selling triggered by the escalating war in the Middle East.
South Korea led the recovery, with the KOSPI surging as much as 12% at one stage as investors rushed to buy discounted shares following a near 20% collapse over the previous two sessions that had pushed the index close to bear-market territory.
The rebound came after South Korea’s president ordered the activation of a $68 billion market stabilisation fund on Thursday to support financial markets amid the turmoil.
Asian gains followed a stronger session on Wall Street, where better-than-expected data on US private-sector hiring and services sector activity helped lift sentiment.
Global markets have been shaken since the United States and Israel launched strikes against Iran on Saturday, reportedly killing the country’s supreme leader and triggering retaliatory attacks across the Gulf region.
The conflict has also disrupted global energy markets after Iran effectively closed the Strait of Hormuz, a critical shipping route that carries roughly one-fifth of the world’s crude oil and large volumes of liquefied natural gas. The disruption has sent energy prices sharply higher.
Both major oil benchmarks have climbed nearly 20% since Friday, fuelling concerns about a renewed inflation surge and undermining expectations that central banks could soon cut interest rates.
Seoul’s market had previously been one of the region’s strongest performers, rising roughly 50% since the start of the year — including a 76% surge in 2025 — driven by strong gains in semiconductor giants Samsung Electronics and SK Hynix.
Elsewhere in Asia, Japan’s Nikkei 225 climbed 1.9%, while Taiwan’s TAIEX rose more than 2%. Markets in Hong Kong, Shanghai, Sydney, Singapore, Wellington, Manila, Mumbai and Bangkok also advanced, though many pared earlier gains.
Markets had already begun stabilising on Wednesday after reports that Iranian intelligence officials had indicated to the US that Tehran was open to negotiations.
In energy markets, Brent crude rose 0.45% to $81.77 per barrel. European gas futures dropped 8%, although they remain about 58% higher than levels seen last Friday.
US equities also moved higher, with the S&P 500 gaining 0.79%, the Nasdaq Composite rising 1.3%, and the Dow Jones Industrial Average adding 0.49%.
