Asian shares surge, led by KOSPI; Treasuries fall as war concerns ebb

Asian shares rallied on Thursday with a decline in U.S. Treasuries pointing to a tentative recovery in risk ​appetite that has been hammered by the escalating war in the Middle East. South Korea’s KOSPI gauge recovered ‌its steep losses in the prior session following a rally on Wall Street on hopes the United States and Iran will seek an off-ramp from hostilities. Oil and gold traded higher. China set its growth target at a slightly lower pace than the previous year in a closely watched, wide-ranging economic ​plan. The U.S. Senate backed President Donald Trump’s military campaign against Iran, suggesting no quick resolution to a war that has ​roiled financial markets, transportation networks, and energy production. “Geopolitical risk can flare up again very quickly, so ⁠any early gains we see this morning across Asia-Pacific region share markets may not last,” Paco Chow, dealing manager at Moomoo ​Australia and New Zealand, said in a note. “The outlook will remain cautious until we see oil flows return to normal.”