Asian markets rebounded sharply Thursday following significant losses the previous day, even as European stocks saw modest gains. U.S. Stock futures held steady Thursday morning after a rally on Wednesday. The shifts come amid ongoing global economic uncertainty.
South Korea’s Kospi index closed up 9.6% after a record sell-off of 12% on Wednesday.
According to Thomas Mathews, head of Asia-Pacific market analysis at Capital Economics, the sharp declines in Seoul earlier this week may be attributed to a correction after a period of exuberance. “Korean stocks have benefited (recently) from extreme euphoria, perhaps excessive speculation and needed a breather,” Mathews said Thursday. “profit expectations had soared.”
The recovery in other Asian stock markets was less pronounced following Wednesday’s slight declines. The STOXX Europe 600, a benchmark European index, rose 0.5% after a larger increase the previous day, following earlier losses this week.
U.S. Futures indicated a mixed open on Wall Street. The Dow Jones was on track to open down 0.1%, while futures for the S&P 500 and Nasdaq were little changed.
More broadly, Deutsche Bank noted in a report Thursday that markets “have remained highly sensitive to headlines,” pointing to a drop in oil prices on Wednesday after the New York Times reported indirect contact between Iran and the United States regarding potential negotiations to complete their conflict.
Similarly, Jefferies economist Mohit Kumar wrote Thursday that the report helped to “establish a tone for risk-on markets.”
Despite this, Brent crude, the global oil benchmark, closed Wednesday at its highest level since January 2025. It rose another 2.4% Thursday morning, reaching US$83 per barrel. West Texas Intermediate (WTI), the U.S. Oil benchmark, also increased by 3%.
