Asian markets closed higher on March 5, 2026, staging a strong rebound after the dramatic selloff that shook regional markets a day earlier. Investors returned to equities across most major markets, driving a broad-based recovery led by South Korea.

The rally reflected bargain hunting and stabilization following one of the sharpest declines seen in recent weeks across Asian equities.

South Korea Leads Powerful Market Recovery

South Korea’s KOSPI Composite Index surged 9.63% to 5,583.90, recovering a significant portion of the prior session’s historic decline. The rebound suggests aggressive buying activity after the previous day’s 12% plunge, with investors taking advantage of discounted valuations.

Japan’s Nikkei 225 climbed 1.90% to 55,278.06, indicating improved investor confidence following the region’s sharp volatility. The recovery was supported by gains in export-driven sectors and technology shares.

India’s S&P BSE Sensex rose 1.14% to 80,015.90, reflecting renewed optimism in domestic equities after the recent downturn.

China and Australia Join Regional Gains

China’s SSE Composite Index advanced 0.64% to 4,108.57, showing moderate stabilization after recent losses. The rebound suggests cautious confidence returning to mainland markets.

Australia’s S&P/ASX 200 rose 0.44% to 8,940.30, supported by gains in financial and commodity-linked sectors. The Australian Dollar Index climbed 0.62% to 70.76, reflecting improved demand for risk-sensitive currencies.

Hong Kong’s Hang Seng Index gained 0.28% to 25,321.34, posting a modest recovery after the previous session’s decline.

Currency Stability Supports Market Sentiment

Currency markets showed signs of stabilization during the session. The Japanese Yen Index rose 0.36% to 63.68, indicating modest safe-haven demand amid lingering market uncertainty.

At the same time, the strengthening Australian dollar suggests renewed risk appetite among investors, particularly in commodity-linked markets.

The simultaneous rise in equities and currencies indicates that investors are cautiously rebuilding positions after the sharp market correction earlier in the week.

Outlook

While today’s rebound reflects improving sentiment, markets may remain volatile in the near term following the recent extreme swings. Investors will be watching closely to see whether the recovery gains momentum or stalls as global uncertainties persist.

Stability in South Korea’s market will be particularly important, as its sharp movements have been a key driver of regional volatility. Meanwhile, developments in global interest rate expectations, currency fluctuations, and macroeconomic data releases could shape investor positioning across Asia.

For now, March 5 represents a significant rebound across Asian equities, signaling that buyers have re-entered the market following one of the most dramatic selloffs of the year. However, sustained recovery will depend on whether confidence continues to rebuild in the coming sessions.