Asian shares jump following Wall Street gains; oil prices spike on Iran war fears
Bangkok: Asian stock markets opened sharply higher on Thursday following a strong rebound on Wall Street, although rising oil prices and uncertainty surrounding the Middle East conflict continued to keep investors cautious.
South Korea’s Kospi surged 10.1% to 5,607.71, recovering much of its historic losses from the previous day after the government announced emergency economic measures. The benchmark index had recorded its steepest single-day drop on Wednesday as investors locked in profits amid escalating tensions linked to the war with Iran.
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Japan’s Nikkei 225 also moved higher, gaining 2.8% to 55,793.74, though it trimmed some of its earlier gains during trading. In Australia, the S&P/ASX 200 edged up 0.1% to 8,913.10, while New Zealand’s benchmark index rose 0.5%. Taiwan’s main stock index climbed 2.2%, reflecting broader regional optimism following Wall Street’s recovery.
However, U.S. stock futures slipped slightly. Futures for the Dow Jones Industrial Average dropped 0.3%, while S&P 500 futures edged 0.1% lower, signalling continued caution among investors.
Meanwhile, oil prices resumed their upward climb, adding pressure on global markets. Brent crude, the international benchmark, rose 2.6% to $83.51 per barrel, while U.S. crude jumped 3.2% to $77.01 per barrel in early trading.
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On Wednesday, U.S. stocks rebounded as oil prices temporarily stabilised and economic data showed encouraging signs. The S&P 500 gained 0.8% to 6,869.50, recovering much of the losses recorded since the Iran conflict began. The Dow Jones Industrial Average rose 0.5% to 48,739.41, while the Nasdaq Composite advanced 1.3% to 22,807.48.
Economic reports also supported investor sentiment. Data showed growth in U.S. services sectors, including real estate and finance, accelerated last month at the fastest pace since mid-2022. At the same time, price increases slowed, offering some relief for inflation concerns.
Another report indicated that U.S. private employers increased hiring last month, raising expectations for a positive government jobs report due later this week.
Despite the rebound, investors remain wary about how long the Iran conflict could last and how higher oil prices might fuel inflation and hurt corporate profits. Historically, global markets have tended to recover quickly from Middle East conflicts, provided oil prices do not surge dramatically.
Still, some analysts remain pessimistic. Francis Lun, CEO of Venturesmart Asia, warned that the situation could worsen, saying the conflict risks escalating further and creating deeper uncertainty for financial markets.
On Wall Street, gains were led by technology and crypto-related stocks. Coinbase Global surged 14.6%, while Robinhood Markets climbed 8.1% as Bitcoin rebounded above $73,000. Major tech companies also lifted the market, with Amazon rising 3.9% and Nvidia gaining 1.7%.
In currency trading early Thursday, the U.S. dollar slipped slightly to 156.77 Japanese yen, while the euro eased to $1.1626.