Asian equities staged a sharp recovery after Wednesday's selloff, with South Korea's Kospi Index surging 11% following its worst crash ever.

Asian equities staged a sharp recovery after Wednesday's selloff , with South Korea's Kospi Index surging 11% following its worst crash ever. The broader MSCI Asia Pacific Index gained 2.8%, tracking strength from US markets where the S&P 500 climbed 0.8% and Nasdaq 100 rose 1.5%. Strong US service sector data showing the fastest expansion since mid-2022 and inflation concerns easing supported the rebound. Oil extended gains to a fifth consecutive day as geopolitical tensions persist. China set its 2026 GDP target at 4.5%-5%, the least ambitious since 1991. Market participants remain cautious, with Goldman Sachs CEO David Solomon noting that greater clarity on conflict duration and inflation impact will be crucial for sustained recovery. Investors are watching crude prices closely as energy market volatility threatens inflation acceleration.