Korea Leads Asian Stock Rebound and Dollar Gains – Asia Market Wrap
A bounce in global equities moved to Asia, with South Korea recovering from its worst dip on record, as markets regained their composure after the Middle East war heightened volatility.
The MSCI All Country World Index increased 0.4% as Asian shares rallied for the first time since the Iran war began over the weekend. South Korea’s benchmark rose 11%, recovering after a 12% drop the previous session. Sentiment was originally lifted by a Wall Street rally when economic data alleviated inflation fears.
The rise appeared fragile, with equity-index futures in the United States and Europe slipping lower. In addition, the dollar rose, reinforcing its reputation as a safe haven in times of crisis.
While confidence in the stock market recovered, crude oil continued to rise. Gold prices rose as concerns grew that the battle might drag on. Treasuries fell, and the 10-year yield rose 3 bps to 4.13%.
Meanwhile, China’s government has ordered the country’s top oil refiners to suspend diesel and petrol exports as the intensifying conflict interrupts the flow of crude from one of the world’s greatest producing regions. Chinese stocks also rose despite the country setting its 2026 GDP target at 4.5% to 5%, the slowest growth rate since 1991.
