TOKYO, 5 March 2026 (The Capital Post)— Asian stock markets rallied on Thursday, led by a sharp rebound in South Korea’s benchmark KOSPI index, as easing concerns over escalating conflict in the Middle East boosted investor appetite for risk.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose about 2.9%, while South Korea’s KOSPI jumped more than 10% after heavy losses in the previous trading session. Japan’s Nikkei also advanced nearly 3% as markets tracked gains on Wall Street.
The recovery came as investors reacted to signs that tensions between the United States and Iran could stabilise, helping improve sentiment after days of volatility across global financial markets.
Meanwhile, U.S. Treasury prices fell as demand for safe-haven assets eased, pushing yields higher. The yield on benchmark 10-year U.S. Treasury notes climbed above 4.1%, reflecting a shift back toward riskier investments.
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Despite the rebound in equities, analysts cautioned that markets could remain volatile given the uncertain geopolitical outlook and ongoing concerns over energy supply disruptions linked to the conflict. Oil and gold prices continued to trade higher amid persistent global uncertainty.
China also drew attention after announcing a 2026 economic growth target of around 4.5% to 5%, slightly lower than the previous year, signalling a more cautious outlook as policymakers focus on economic stability and structural reforms.
Analysts say global markets are likely to remain sensitive to geopolitical developments and energy price movements in the coming weeks as investors reassess risk and economic prospects.-The Capital Post
