South Korea’s KOSPI and Japan’s Nikkei average fell sharply. Selling spread mainly across semiconductor and AI-related stocks as oil prices topped $100 and expectations for US monetary tightening strengthened.
South Korea’s KOSPI closed below 7,000 on 11 September at 6,909.91, down 1.76% from the previous day. Japan’s Nikkei average ended at 64,011.34, down 1.93%, after falling as low as 63,208.63 during the session. The Tokyo Stock Exchange’s TOPIX also fell 0.65% to 4,028.30. Semiconductor and AI-related stocks were among the biggest decliners, with shares including Samsung Electronics and SK hynix falling.
In the oil market, North Sea Brent crude futures stood at $107.63 and WTI at $102.48, both remaining above $100. Energy prices stayed elevated amid concerns over the situation in the Middle East and the outlook for supply risks. Oil prices declined on 11 September, but rose sharply over the course of the week.
Expectations for a Federal Reserve rate hike strengthened following the release of the US CPI report, and markets priced in a 0.25 percentage-point hike more fully at the FOMC meeting on 15–16 September. Interest-rate futures moved sharply, with the probability of a rate hike rising temporarily to around 90%.
Meanwhile, the US Strategic Petroleum Reserve (SPR) stood at 285.40 million barrels as of the latest week, its lowest level since 1982. Concerns have emerged over the impact of prolonged high oil prices on inflation and corporate earnings.
Oil prices and interest-rate trends are the main focus across Asian markets, and semiconductor and AI-related stocks are expected to remain under pressure. Developments around the Strait of Hormuz and the monetary-policy direction of the US and China will be key areas to watch.
In related markets, European and US stocks rebounded after falling temporarily, but the impact of higher oil prices and interest rates may persist in Asian markets.