Russia's Moscow Exchange spiked nearly 30% on Friday after slumping as much as 50% in the previous session once trading resumed after a nearly two-hour suspension amid the Ukraine conflict.
While Russia has unleashed a full-scale ground invasion and air assault on Ukraine, tracking Wall Street's surprising reversal overnight, global stock markets rebounded on Friday as investors weighed the longer-term impact of harsh Western sanctions against Russia.
Investors' risk appetite increased, weighing on the dollar and safe-haven assets, while oil pared gains.
That comes a day after a resounding rout in financial markets following Russia's military invasion of Ukraine, which led to the Moscow exchange suspending trading for nearly two hours.
“Days like these (Thursday) - Russia and Ukraine war, remind us that consistency of thoughts and advice is so important and hence this is a time to appreciate asset allocation in portfolios," said Rahul Bhutoria, Director at Valtrust Capital.
"A substantial impact on markets and portfolios has already taken place and this is not at all a time to sell in panic," he added.
Several western countries have announced harsh sanctions against Russia and also warned of consequences for the onslaught in Ukraine.
Investors rediscovered their appetite for riskier bets, with Asian shares regaining ground, including Indian equity bourses, which recovered on Friday after a massive crash in the previous session.
At the same time, oil futures pulled back from multi-year records after Russia invaded Ukraine and responses from other countries.
Still, analysts suggested a cautious approach to risk taking.
"It is difficult to predict the bottom of the market in a scenario like war. Events will shape the movement. The best thing for an investor is to follow asset allocation principles. This is likely to be a ''Buy on Dip Market' albeit with a lot of volatility in the near term," said Nilesh Shah, Group President & MD, Kotak Mahindra Asset Management Company.