Asian markets rebound as Wall Street rally eases economic worries

Asian markets rose on Thursday, recouping part of Wednesday’s steep losses as investors cheered a Wall Street bounce sparked by strong US jobs data and easing concerns about the economy.

Investor sentiment improved after ADP payroll figures showed US private sector employment jumped far more than expected last month, following an unexpected decline the month before. Separate data also indicated robust growth in the services sector. The reports drew particular attention amid the ongoing US government shutdown, limiting other economic releases.

The rebound came despite lingering worries that the tech-driven AI rally fueling this year’s market gains could have created overvalued stocks. Some major regional players, including Japan’s SoftBank and South Korean chipmakers Samsung and SK hynix, suffered heavy losses during Wednesday’s selloff.

Tokyo’s Nikkei 225 rose 1.3 percent to 50,883.68, Seoul climbed, and other Asian markets including Hong Kong (+1.8%), Shanghai (+1.0%), Sydney, Singapore, Taipei, Manila, Bangkok, and Jakarta also advanced, though most had not fully recovered previous losses.

Markets were also buoyed by optimism after a US Supreme Court hearing questioned the legality of former President Donald Trump’s global tariffs. Justices debated whether Trump’s use of emergency powers to impose sweeping levies violated Congress’s authority to tax, with both conservative and liberal justices expressing skepticism.

Still, legal experts noted the government could impose temporary duties of up to 15 percent if the court rules against Trump’s tariffs while seeking longer-term solutions.

Currency and commodity movements reflected the cautious optimism:

Euro/dollar: $1.1509, up from $1.1488

Pound/dollar: $1.3055, up from $1.3048

Dollar/yen: 153.94, down from 154.13

WTI crude: $59.85 per barrel, up 0.4%

Brent crude: $63.74 per barrel, up 0.4%

European markets followed suit, with the Dow up 0.5 percent at 47,311 and London’s FTSE 100 gaining 0.6 percent to 9,777.08.

Fabien Yip, an IG market analyst, cautioned that valuations for AI-driven stocks may remain stretched if interest rates stay high. “Investors are questioning whether current price levels can be sustained, particularly on stocks boosted by the AI boom,” Yip said.