Asian equities rebounded Thursday after a brutal session, with South Korea's Kospi futures surging 8% as investors digested better-than-expected US economic data. The S&P 500 climbed 0.8% and the Nasdaq 100 rose 1.5% Wednesday, driven by tech megacaps and a service sector report showing the fastest growth since mid-2022. A price index hitting an almost one-year low helped soothe inflation concerns that had rattled markets.

Despite geopolitical tensions escalating after Iran's missile strikes on Israel and Gulf states, Charles Lemonides of ValueWorks LLC said the most likely outcome is the conflict works itself out while the economy continues to accelerate. The supportive US market backdrop offered relief from Wednesday's regional selloff. Treasury yields edged higher to 4.10% while the dollar slipped 0.3%, with the yen strengthening to around 157 per dollar.

Investors now await Friday's February jobs report and next week's inflation data before the Fed's March meeting. While Goldman Sachs' Peter Oppenheimer warned of headwinds from the war and AI anxiety, he noted economic strength and robust earnings should limit any pullback. The National People's Congress convenes in China, with the new Five-Year Plan expected to be unveiled, adding another layer of market focus.