South Korean stock market soars 11%, Asian markets rise across the board, TSMC back to 1950

Asian stocks rebounded sharply on Thursday after a volatile sell-off the previous trading day.

South Korea’s Kospi index surged 11% after two days of historic declines, reflecting short covering and bargain hunting following extreme panic. Taiwan’s weighted index also rose over 1,300 points, with TSMC (2330) up 4.5%, reclaiming its lost ground from yesterday. The Nikkei 225 index increased about 4%.

(Korean stock market plunge triggered circuit breakers, Taiwan stocks fell over a thousand points, TSMC dropped below 1,900 yuan)

U.S. economic data eases inflation concerns

The strength in the S&P 500 and Nasdaq 100 indices yesterday provided a safe haven effect for Asian markets. Recent U.S. data showed robust service sector expansion and a price index at a near one-year low, which somewhat “relieved inflation pressures,” easing fears of aggressive tightening by the Federal Reserve.

(Risk sentiment returns, Bitcoin briefly breaks 74K)

Energy price volatility and safe-haven assets

Geopolitical tensions directly pushed up energy costs, with West Texas Intermediate (WTI) crude oil approaching $76 per barrel. The five-day rise in oil prices has become a key variable in inflation expectations. Meanwhile, gold, as a safe-haven asset, performed well as the dollar softened slightly, maintaining around $5,170 per ounce. Investors are balancing profit-taking from the U.S. rebound with risk hedging through gold and oil positions. This asset allocation divergence indicates that markets have yet to reach a consensus on the trade-off between “geopolitical risks” and “economic growth.”

This article, “South Korea’s stock market surges 11%, Asian stocks broadly rise, TSMC back to 1950,” first appeared on Lian News ABMedia.