SINGAPORE – Asian stock markets rebounded on Thursday, recovering from a sharp selloff in the previous session, as upbeat U.S. economic data restored investor confidence and drew buyers back into markets trading near record highs.
Data released on Wednesday showed the U.S. services sector reached an eight-month high in October, while private payrolls rose by 42,000 — surpassing expectations. The encouraging figures eased fears about the labor market and helped lift Wall Street overnight.
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Japan’s Nikkei surged 1.4% after a steep 2.5% decline on Wednesday, while South Korea’s Kospi climbed 0.8%. MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.76%, signaling renewed optimism across regional markets.
U.S. Treasury yields held firm, with the 10-year yield at 4.1473%, as traders reduced bets on a Federal Reserve rate cut next month. The dollar remained strong near a five-month high, supported by the improved economic outlook.
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Meanwhile, China’s Shanghai index reclaimed the key 4,000 level as optimism over tech self-sufficiency boosted semiconductor and AI-related shares. Analysts expect the rally to broaden, particularly among firms leading industrial and technological innovation.
In commodities, Brent crude rose 0.36% to $63.75 a barrel, U.S. crude climbed 0.4% to $59.84, and spot gold edged up to $3,987.56 an ounce.