Global markets take a breath

Asian markets snapped back on Thursday, with South Korea’s KOSPI rising by almost 10%, clawing back a chunk of its drubbing in recent days, and Japan’s Nikkei adding nearly 2%. The apparent respite amid the ongoing Middle East conflict wasn’t confined to Asia, with U.S. and European stocks also pushing higher on Wednesday as investors took comfort from even the faintest hints that geopolitical tensions might ease. I’ll get into that and more below. But first, check out my latest column on why Europe may be able to absorb the Middle East energy shock - for now. And listen to the latest episode of the Morning Bid daily podcast. Subscribe to hear Reuters journalists discuss the biggest news in markets and finance seven days a week. GLOBAL MARKETS TAKE A BREATH Global markets appear to be catching their breath. The Nasdaq jumped 1.29% on Wednesday in a tech-led rally, while the S&P 500 rose 0.78%, helped along by some upbeat macro prints. A mix of factors seem to be fuelling this market breather. Traders seemed to take heart in the New York Times’ report yesterday that Iranian intelligence had indirectly reached out to the CIA after Saturday’s attacks to try to reach a resolution. Washington’s plan to help reopen the embattled Strait of Hormuz via navy escorts and insurance coverage may also have raised some optimism. There was also some positive news on the labour market front ahead of Friday’s payrolls release. U.S. private payrolls printed a higher-than-expected rise for February. ISM's non-manufacturing PMI, meantime, hit a more than three-year high. But uncertainty still reigns as the Middle East conflagration enters its sixth day and a swift resolution to a clogged-up Strait of Hormuz looks, for now, like a distant prospect. Indeed, analysts have warned that Iran can keep up drone harassment in the narrow waterway for months, and it's far from clear that tankers would brave the strait even with U.S. naval and insurance support in place. And other signs point towards this being more than a days-long conflict, as the U.S. Senate failed to block the administration’s campaign against Tehran, giving President Trump largely unbounded power to direct the war. Oil marched higher on Thursday on the prospect of continued disruption. Both U.S. and Brent crude jumped over 2%, with the latter topping $83 per barrel. Gold also edged up on safe-haven demand, and the dollar strengthened again after retreating from three-month highs. Meantime, U.S. stock index futures edged lower ahead of the bell and U.S. Treasuries eased. Investors will have even more to chew on later today with the release of weekly jobless claims, ahead of tomorrow's non-farm payrolls. Elsewhere, chip designer Broadcom on Wednesday reported a first-quarter revenue rise of 29% to $19.31 billion and projected its AI chip revenue would top $100 billion next year. It’s emerging as a strong competitor in the space as it signs deals to rival those of its dominant competitor Nvidia, including with Meta. Chart of the day Global stocks have rebounded in recent days, recovering some of their 2026 gains lost in the wake of the U.S.-Israel attack on Iran on 28 February. Today's events to watch * U.S. weekly jobless claims (8:30 AM EST), January import prices (8:30 AM EST), Q4 productivity (8:30 AM EST) * Fed's Michelle Bowman speaks Want to receive the Morning Bid in your inbox every weekday morning? Sign up for the newsletter here. You can find ROI on the Reuters website, and you can follow us on LinkedIn and X. Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.