KOSPI Jumps 3.54%, Nikkei Gains 1.43%, But How Is Oil Driving the Rebound?

The Korea Composite Stock Price Index (KOSPI) jumped 3.54% and Japan’s Nikkei 225 gained 1.43% in Wednesday morning trading. According to some, easing oil prices helped chip stocks lead the rebound, though crude still sits above $100 a barrel.

Oil explains only part of the move. Still, KOSPI remains down 17.14% over one month, per TradingView.

How Much Is Oil Fueling the KOSPI and Nikkei Rebound?

West Texas Intermediate (WTI) futures fell 1.80% to $101.79 a barrel overnight. Meanwhile, Brent slipped 0.69% to $108.79 after nearing $112 earlier in the session.

Seo Sang-young, a managing director at Mirae Asset Securities, links the bounce to US-Iran talk hopes. Those hopes are pushing oil lower and steadying long-term interest rates, which draws dip buyers into chip stocks.

However, oil is not the only driver. Super Micro Computer, a US maker of AI servers, jumped in after-hours trading on an earnings surprise.

Han Ji-young, an analyst at South Korean brokerage Kiwoom Securities, credits technical buying after Tuesday’s KOSPI plunge. The index had fallen more than 3% on Tuesday.

Can the Rebound Survive Another Oil Spike?

In Tokyo, the Nikkei 225 stood at 64,993.64, per TradingView. Kioxia, a Japanese memory chipmaker, rose about 6%, while SoftBank Group, a tech investment giant, gained about 4.5%, yet it fell about 6% on Tuesday, per Trading Economics.

Early in Seoul trading, Samsung Electronics rose nearly 3% and SK Hynix, a memory chipmaker, gained nearly 4%. Foreigners bought a net 131.1 billion won ($99 million) of shares. In contrast, individual investors sold 201.3 billion won ($152 million).

A renewed oil climb could revive inflation fears and hit growth stocks such as chipmakers, market participants say. Rates add another risk, as Fed hike fears clouded last Friday’s KOSPI rebound. Overall, Asia’s chip-led rebound remains tied to crude, US tech earnings and Middle East developments.

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