Asian stocks rise sharply, KOSPI rebounds

KOSPI was the best performer in Asia, bouncing back 12% from two days of deep losses

Asian stocks rose sharply on Thursday, with KOSPI rebounding from steep losses as a mix of bargain buying and positive cues from U.S. stock market aided markets.

Stocks were still nursing steep losses this week as risk appetite was battered by the ongoing U.S.-Iran war, which showed few signs of easing.

Chinese stocks gained after Beijing set a slightly weaker growth target for 2026, but pledged to continue supporting the economy with fiscal stimulus.

A sustained increase in oil prices also kept markets on edge over the U.S.-Iran war’s economic impact.

KOSPI was the best performer in Asia, bouncing back 12% from two days of deep losses.

The index was aided by a host of dip-buying, especially into the chipmaking and auto sectors that had fuelled its rally to record highs last week.

Samsung Electronics Co Ltd, SK Hynix Inc, and Hyundai Motor– three of the largest stocks in South Korea– rallied between 11% and 13%, recovering some of their recent losses.

South Korean markets had tumbled in the past two sessions, as an extreme deterioration in risk appetite, following the outbreak of the U.S.-Iran war, which sparked a wave of liquidations in long positions.

Stocks were also vulnerable to profit-taking after rallying 50% so far in 2026.

Shanghai Shenzhen CSI 300 and Shanghai Composite indexes gained 1.3% and 0.8%, respectively, while Hang Seng rose 1%.

Beijing on Thursday set a 2026 gross domestic product target of 4.5% to 5%, slightly lower than the 5% growth China has achieved for the last three years. The target is China’s weakest annual growth target since 1991.

Broader Asian markets were largely positive on Thursday, as they recovered a measure of steep losses seen earlier in the week.

Nikkei 225 and TOPIX indexes rose 1.5% and 1.8%, with bank stocks rebounding sharply.

Straits Times index added 0.7%, while Nifty 50 index rose 0.4% in morning trade.