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.

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