[MARKET ANALYSIS] Asia-Pac stocks staged a comeback from the prior day's sell-off

APAC Stocks: Positive

• Asia-Pac stocks rebounded from yesterday's sell-off as the region took impetus from the positive handover from Wall St, where the Nasdaq led the advances on tech strength, while geopolitics remains in focus.

ASX 200: +0.4%

• Index is led higher by tech strength, but with gains capped by losses in the commodity-related sectors and after mixed trade data, which showed a contraction in monthly exports.

Nikkei 225: +2.7%

• Surged at the open but is off today's best levels after giving back the 56,000 status and with some headwinds from a stronger currency and firmer yields.

KOSPI +10.6%

• Rebounded from the prior day's drastic sell-off and surged by over 11% in the first few minutes of trade.

Hang Seng & Shanghai Comp: Hang Seng +1.6% / Shanghai Comp +0.8%

• Chinese markets follow suit to the gains in regional peers, but with the mainland lagging compared to its regional peers, as the attention was on the Government Work Report, in which China set the 2026 GDP target at between 4.5%-5.0%, its slowest growth target on record since 1991.

US Equity Futures: Lower

• US index futures marginally pulled back following the prior day's rally.

European Equity Futures -0.1%

• Indicate a slightly lower cash market open with Euro Stoxx 50 futures down 0.1% after the cash market closed with gains of 1.7% on Wednesday.

Asia-Pacific stocks staged a notable recovery after a sell-off, largely driven by positive momentum from Wall Street, indicating sentiment may be stabilizing. However, mixed trade data, especially from Australia, and a focus on geopolitical concerns highlight that while this rebound is encouraging, underlying vulnerabilities still persist, particularly in commodity sectors and amidst slower growth targets in China. This backdrop suggests that traders should monitor upcoming global economic data closely for further direction on both equities and commodities, particularly given the cautious tone reflected in US and European futures.