Kospi Surges 4% as Oil Prices Rise Amid Ongoing Middle East Tensions
Asian shares mostly rose on Wednesday, despite US stocks dipping from their records. The Kospi in South Korea led the gains, surging 4% to 6,597.90. This came as computer chipmakers like Samsung Electronics and SK Hynix saw renewed buying.
The price of oil also increased, with Brent crude up 0.9% at $89.67 per barrel. This is due in part to ongoing tensions in the Middle East, including the closure of the Strait of Hormuz after a recent attack by Iran-backed Houthi rebels.
Higher oil prices have contributed to rising inflation concerns, with the average cost for a gallon of regular gasoline now at $4.01, according to AAA. This is up from less than $3.14 a year ago. Economists expect the latest monthly reading on US inflation to show a slight decline to 3.4% in July.