KOSPI and Nikkei Diverge as Oil Prices Rise and AI Worries Grow

The KOSPI and Nikkei 225, two of Asia's most influential stock indices, diverged sharply on Tuesday as investors weighed the risks of rising oil prices, elevated bond yields, and a slowdown in AI development.

The KOSPI fell by as much as 0.76% in early trading before recovering some losses, while the Nikkei 225 rose around 0.8% later in the day due to a strong rebound in SoftBank Group shares.

South Korea's tech-heavy index remains sensitive to AI spending due to its reliance on semiconductor giants Samsung Electronics and SK Hynix, which are at the heart of the global memory-chip supply chain.

The BOJ is expected to raise its policy rate by 25 basis points to 1.25% this Friday, with markets focused less on the move itself than on Governor Kazuo Ueda's guidance on further tightening.