Asian Markets Rebound as AI Sentiment Stabilizes

South Korea’s KOSPI index staged a dramatic 17% rebound, clawing back losses after a week of extreme turbulence that had prompted local authorities to restrict leveraged trading products. Japan’s Nikkei climbed nearly 4%, while MSCI’s broadest index of Asia-Pacific shares outside Japan added 6%. Analysts suggest the recent market dip was a reaction to over-leveraged positions rather than a fundamental shift in the AI investment narrative. According to Fabien Yip, a market analyst at IG, the demand for artificial intelligence remains sustainable, with the recent earnings reports providing the necessary catalyst for a sentiment reset.

Currency markets remain tense as the yen trades near 160.66 per dollar following the Bank of Japan’s decision to maintain current interest rates. Investors are now awaiting Governor Kazuo Ueda’s press conference for clues on future policy shifts. The currency’s recent volatility follows suspected joint intervention efforts by Japanese and South Korean authorities to stabilize exchange rates. Meanwhile, oil prices retreated as supply flows through key maritime routes continued despite regional geopolitical friction, with Brent crude falling 2% to $87.16 a barrel.