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KOSPI and Nikkei Climb as Oil Prices Slide and Chip Stocks Surge
KOSPI rose 3.54%, Nikkei gained 1.43% as falling oil prices and chip stocks drove the rebound, with crude still above $100.
21/10/2026 02:277 min read
South Korea’s KOSPI and Japan’s Nikkei 225 both moved higher in Wednesday morning trade, rising 3.54% and 1.43% respectively. Chip stocks are pacing the rebound as oil prices ease, although crude remains above $100 a barrel.
The oil effect is not the sole cause. Over the past month the KOSPI has still lost 17.14%, TradingView data shows.
How Much Is Oil Driving the KOSPI and Nikkei Recovery?
West Texas Intermediate crude futures declined 1.80% overnight to $101.79 per barrel. Brent crude, meanwhile, dropped 0.69% to $108.79, having traded close to $112 earlier in the session.
Mirae Asset Securities managing director Seo Sang-young attributes the bounce to speculation about US-Iran talks. According to Seo, these expectations are pushing oil prices lower and steadying long-term rates, drawing bargain-hunters into chip stocks.
Oil is not the only catalyst. In the US, after-hours trading lifted AI server maker Super Micro Computer on an earnings surprise.
Kiwoom Securities analyst Han Ji-young points to technical buying that followed the KOSPI's more-than-3% slide on Tuesday.
Will the Recovery Withstand a New Oil Surge?
The Nikkei 225 sat at 64,993.64 in Tokyo, according to TradingView. Japanese chipmaker Kioxia rose roughly 6%, and tech investor SoftBank Group gained about 4.5%. Trading Economics data shows SoftBank had dropped around 6% on Tuesday.
In early Seoul trade, Samsung Electronics advanced almost 3% and memory chipmaker SK Hynix added close to 4%. Net buying by foreign investors reached 131.1 billion won ($99 million), while individual investors were net sellers of 201.3 billion won ($152 million).
Market participants warn a fresh oil rally could rekindle inflation concerns and pressure growth names like chipmakers. Interest rates add another risk, given that fears of a Fed rate hike darkened last Friday’s KOSPI recovery. The chip-led bounce in Asia therefore remains linked to crude prices, US technology earnings and Middle East events.
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