Asian equities opened stronger on Thursday, March 5, 2026, staging a broad rebound after the prior session’s war-driven sell-off, as investors followed Wall Street’s recovery and trimmed some of the most defensive positioning built up during the latest escalation with Iran. The bounce was led by North Asia, while energy prices remained elevated, keeping a geopolitical risk premium firmly embedded across markets.
Regional risk rally after Wall Street stabilises
Early trade across Asia reflected a shift from panic to recalibration. Regional benchmarks rose as US equities closed higher overnight and investors interpreted incoming signals as consistent with a “de-escalation is possible, but not assured” base case. That combination supported cyclical sectors and high-beta indices, even as traders continued to price in disruption risks for shipping and energy supply routes linked to the Iran conflict.
The broader MSCI Asia-Pacific gauge excluding Japan advanced close to 3% in early dealing, indicating a region-wide bid rather than a single-market technical rebound. Safe-haven demand softened modestly, with US Treasuries easing and yields ticking up as risk appetite improved.
South Korea leads, Japan rebounds
South Korea’s Kospi surged about 10% at the open, recovering a large portion of the previous day’s outsized decline, with local authorities also flagging emergency economic steps aimed at cushioning volatility and supporting confidence. The magnitude of the move suggests both short-covering and a rapid re-pricing of worst-case scenarios that had been reflected in Wednesday’s sharp drawdown.
Japan’s Nikkei opened firmly higher, up close to 3% in early trade, tracking the rebound in US tech-heavy benchmarks and improved regional sentiment. Even so, the tone remained cautious: markets are increasingly trading “headline-to-headline”, with intraday swings driven by war updates, energy pricing and risk management flows rather than fundamentals alone.
China and Hong Kong firmer as policy focus turns to growth
Chinese equities also opened higher, supported by attention on Beijing’s policy agenda as annual political meetings get under way and investors parse growth targets and stimulus signals. Reports indicated China set a 2026 growth target range of 4.5% to 5%, which markets interpreted as leaving room for additional policy support if external shocks intensify. Hong Kong shares rose in tandem with the mainland, reflecting both regional relief and renewed focus on China’s domestic policy stance.
Australia’s ASX 200 edged up in early trade, lagging North Asia’s stronger rebound but still reflecting a stabilisation after the recent oil-driven volatility. Taiwan also opened higher, with the region’s tech supply chain again acting as a key barometer for risk sentiment.
Oil remains the swing factor for Asia
Despite the equity rebound, crude prices stayed elevated. Brent traded above $83 a barrel and US crude near $77 in early Asian hours, reinforcing concerns about second-round inflation effects and the risk that higher fuel and freight costs filter into consumer prices. For Asian markets, that oil sensitivity is structural: many economies in the region are major energy importers, making their equity and currency performance unusually responsive to Middle East conflict dynamics.
Newshub Editorial in Asia — March 5, 2026
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