BANGKOK (AP) — Shares opened sharply higher in Asia on Thursday after a rebound on Wall Street, as South Korea’s Kospi took back much of its historic losses from a day earlier.
However, U.S. futures fell back, with the contract for the Dow Jones Industrial Average losing 0.3%, while that for the S&P 500 edged 0.1% lower.
In Seoul, the Kospi shot up 10.1% to 5,607.71 and the government announced emergency measures for the economy. The 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.
Tokyo's Nikkei 225 index gave back some early gains but was up 2.8% at 55,793.74.
In Australia, the S&P/ASX 200 edged 0.1% higher to 8,913.10, while New Zealand's benchmark rose 0.5%.
Taiwan's main share index gained 2.2%.
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.
On Wednesday, U.S. stocks rebounded after oil prices stopped spiking and reports gave encouraging updates on the American economy.
But oil prices resumed their ascent early Thursday.
Brent crude, the international standard, gained 2.6% to $83.51 per barrel. U.S. benchmark crude jumped 3.2% to $77.01 per barrel.
The S&P 500 rose 0.8% Wednesday to 6,869.50 and erased much of its losses since the war with Iran began. The Dow Industrials added 0.5% to 48,739.41, and the Nasdaq composite climbed 1.3% to 22,807.48.
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.
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.
In other dealings early Thursday, the U.S. dollar slipped to 156.77 Japanese yen from 156.79 yen. The euro fell to $1.1626 from $1.1632.
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AP Writers Matt Ott, Kim Tong-hyung and Stan Choe contributed.
