Buying interest returned to the Pakistan Stock Exchange (PSX) on Thursday, as the benchmark KSE-100 Index surged over 1,100 points in early trading.

By 9:40am, the index stood at 121,629.44, reflecting a gain of 1,163.51 points or 0.97%.

The recovery comes a day after bearish sentiment saw the index drop by over 1,500 points, settling at 120,465.93 on Wednesday.

Meanwhile, global financial markets remained under pressure. Asian stock exchanges saw declines on Thursday, with Japan’s Nikkei falling 0.8% due to a stronger yen that weighed on exporters.

Taiwan’s benchmark slipped 0.9%, while Hong Kong’s Hang Seng Index dropped 0.8%. US S&P 500 futures were also down 0.4%, though American markets were closed for a national holiday.

In energy markets, Brent crude dipped to $76.32 per barrel but remained near a 4.5-month high. The Japanese yen rose 0.2% to 144.92 per dollar, while the US dollar gained against major currencies, benefiting from its safe-haven status.

In a significant diplomatic development, President Trump hosted Pakistan’s Army Chief, Field Marshal Syed Asim Munir, at the White House for a private meeting a first in US-Pakistan relations, as no senior civilian officials accompanied him.

The rare gesture is being viewed in Islamabad as a major diplomatic win, particularly in contrast to recent high-level meetings between Indian officials and US Vice President JD Vance.

Meanwhile, the US Federal Reserve held interest rates steady on Wednesday, signaling potential rate cuts later this year, but adjusted its outlook amid expectations of inflationary pressure from Trump’s proposed tariff policies.