Asian markets moved higher during Thursday trading while US Treasury prices declined reflecting a modest improvement in risk appetite after a period of sharp volatility that had dominated global markets due to geopolitical tensions in the Middle East. The rebound was supported by the recovery on Wall Street which helped several regional indices regain part of the losses recorded in previous sessions.
South Korea KOSPI index led regional gains posting a strong rise after the sharp decline seen in the prior session while Japan Nikkei index also recorded notable advances. Chinese equities also moved higher after Beijing announced a new set of economic and development targets aimed at supporting growth in the coming years.
In contrast US Treasury prices declined which pushed yields higher with the yield on the ten year benchmark rising compared with the previous session. These moves reflected a shift of some liquidity toward risk related assets as market sentiment improved slightly.
In energy markets oil prices continued to rise supported by concerns surrounding global supply as tensions in the region persisted. Both US crude and Brent crude have recorded strong gains since the start of the crisis while markets continue to monitor developments that could affect global oil flows.
Gold also benefited from persistent uncertainty in global markets maintaining relatively elevated levels as investors continued to seek defensive assets during periods of geopolitical instability.
Meanwhile most Asian currencies weakened during Thursday trading as the US dollar regained strength after a modest pullback in the previous session. Escalating tensions in the Middle East alongside higher oil prices weighed on investor sentiment and encouraged a more cautious approach in financial markets.
The US dollar index rose about 0.2 percent after giving back part of its gains overnight while dollar futures also moved higher. The move followed a strong advance earlier in the week as investors shifted toward safer assets amid rising geopolitical risks.
Market attention remains focused on developments in the Middle East where no clear signs of de escalation have emerged so far. Recent military developments have raised concerns about a wider confrontation and the potential impact on global trade routes particularly as worries grow over shipping activity through key maritime corridors.
The Strait of Hormuz remains a central focus for investors due to its critical role in global oil trade. Any disruption to crude shipments through this narrow passage could quickly affect energy prices which has already begun to appear in the notable rise in oil prices this week.
In China authorities indicated that the economic growth target for 2026 will range between 4.5 percent and 5 percent slightly below targets set in previous years. The move reflects an effort by policymakers to balance economic growth with structural adjustments including efforts to address industrial overcapacity.
Data from Australia also showed that the country trade surplus narrowed in January which contributed to a modest decline in the Australian dollar against the US currency.
Overall movements in regional currencies remain closely tied to geopolitical developments and energy price dynamics as well as global monetary policy expectations leaving markets exposed to continued volatility in the near term.
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