Despite the ongoing conflicts in the Middle East, Asian stocks rebound.

Asian stock markets rebounded after experiencing a regional historic sell-off on the previous trading day. South Korea's composite index led the gains, up 9.6%, while Japan's Nikkei index rose 1.9%. Hong Kong's Hang Seng Index also rose by 0.4%. Strong overnight economic data from the United States supported risk appetite, while the situation in the Middle East remains uncertain. Pepperstone analyst Michael Brown said, "When market sentiment has shifted to such extreme pessimism, a particularly striking or specific catalyst is usually not needed to significantly reverse the situation." China's Shanghai Composite Index rose 0.6%, after China set its growth target for 2026 at 4.5%-5.0%, marking a shift from quantity to quality.