Asia-Pacific Markets Rebound, China Sets 2026 Growth Target

Asia-Pacific markets rebounded on Thursday after several days of steep losses, with South Korea's Kospi jumping as much as 12% and closing 9.6% higher. The rebound was driven by a reversal of leveraged selling and improved risk sentiment following stabilization in oil prices. Other Asia-Pacific markets also rose, with Japan's Nikkei 225 up 1.9% and Hong Kong's Hang Seng index up 0.35%. China's CSI 300 rose 0.98% after the government set a GDP growth target of 4.5% to 5% for 2026. Overnight in the U.S., stocks rose, with the Dow Jones Industrial Average adding 0.49% and the Nasdaq Composite moving 1.29% higher.

China has set a lower economic growth target of 4.5% to 5% for 2026, indicating continuity rather than change in its economic approach. The target is the lowest since 1991 and comes amid a property slump, headwinds at home, and growing uncertainty abroad. Premier Li Qiang announced the target, emphasizing the need to balance reviving the economy and building China into a global power in advanced technologies. The government plans to support domestic demand without unleashing major new stimulus and has trimmed defense spending growth to 7%. China faces challenges including tariff wars, actual wars, and a grave and complex landscape with external shocks and domestic difficulties.

China's Premier Li Qiang presented the government's annual work report at the National People's Congress, outlining priorities for 2026 amid a complex international landscape. The report highlighted China's commitment to 'orderly' multipolarism and 'inclusive' globalization. The country is set to finalize its 15th five-year plan, which will guide economic and social development until 2030. The plan is expected to include stepped-up efforts in technology, energy, and decarbonization. The People's Liberation Army is also set to make 'significant progress' in information warfare, military mechanization, and strategic projection by 2027.