BANGKOK – Shares opened sharply higher in Asia on Thursday after a rebound on Wall Street, as South Korea’s Kospi took back the 12% it had shed a day earlier.
In Tokyo, the Nikkei 225 jumped 4.3%, to 56,600.44. The Kospi was at 5,702.02 and trading was suspended after the benchmark shot up shortly after the open.
Recommended Videos
Australia's S&P/ASX 200 picked up 0.3% to 8,927.20, while New Zealand's benchmark rose 0.9%.
Taiwan's main share index gained 4%.
However, U.S. futures were little changed, with the contract for the Dow Jones Industrial Average nearly flat while that for the S&P 500 edged 0.2% higher.
U.S. stocks rebounded after oil prices stopped spiking and reports gave encouraging updates on the American economy.
The S&P 500 rose 0.8% Wednesday and erased much of its losses since the war with Iran began. The Dow Industrials added 0.5%, and the Nasdaq composite climbed 1.3%.
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.
South Korea's Kospi fell by the most ever in a single day on Wednesday. But it had soared recently to record highs, and the war with Iran led traders to lock in those profits.
Oil prices moderated throughout Wednesday.
After briefly topping $84, the price for a barrel of Brent crude, the international standard, settled at $81.40, back to where it was a day earlier. A barrel of benchmark U.S. crude rose 0.1% to $74.66.
However, oil resumed its upward climb early Thursday, gaining 2.4% to $83.32 per barrel. U.S. benchmark crude jumped 2.5% to $76.53 per barrel.
Stocks also got a boost from signs of strength for the U.S. economy.
One report 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. Encouragingly for inflation, it also said prices for such businesses are increasing at a slower rate, at least before the war with Iran began.
A second report suggested U.S. employers outside of the government picked up their hiring last month. That could be a hopeful signal for the more comprehensive report coming Friday from the U.S. government 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.
Not everyone is optimistic.
“I think the Iran situation is getting out of hand, and I think that U.S. President Donald Trump miscalculated enormously,” said Francis Lun, CEO of Venturesmart Asia. “The situation is very grim.”
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.
All told, the S&P 500 rose 52.87 points to 6,869.50. The Dow Jones Industrial Average climbed 238.14 to 48,739.41, and the Nasdaq composite rallied 290.79 to 22,807.48.
The rally on Wall Street followed gains in Europe.
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.
___
AP Writers Matt Ott, Kim Tong-hyung and Stan Choe contributed.