Asian Equities Rise as Strong Rebound in Chip Stocks Spurs Risk Appetite

Dow Jones07-22 09:14

Asian equities rose Wednesday morning, spurred by a strong rebound in U.S. semiconductor stocks as investors prepared for a slew of earnings from major technology companies.

South Korea's Kospi climbed 5.2%, leading the advance across Asia. Chip-making index heavyweight SK Hynix was among the top gainers, rising 8.3%. Samsung Electronics rose 5.5%. Japan's Nikkei Stock Average advanced 1.6%, with chip manufacturers Kioxia Holdings and Renesas Electronics rising 10% and 7.6%, respectively. The U.S. PHLX Semiconductor Index climbed 5.2% on Tuesday, leading a broad market recovery.

"The main theme was a recovery in risk appetite," Commerzbank Research analysts said in a note. "Investors snapped up AI-related names after the recent heavy selling and ahead of key tech earnings reports this week." Alphabet, Tesla and IBM report earnings Wednesday.

Meanwhile, crude oil futures rose amid mounting risks over supply disruptions in the Middle East. Front-month West Texas Intermediate crude oil futures gained 0.5% to $84.79 per barrel and front-month Brent crude oil futures advanced 0.7% to $91.67 a barrel, ICE data showed.

A threat by Yemen's Houthi militants to blockade Saudi Arabia has started to take shape, while Ukrainian attacks on Russia's Black Sea shipping have disrupted operations of a key pipeline there. Two oil tankers loaded with Saudi crude oil turned around Tuesday. A successful blockade would open another front in the U.S.-Iran conflict and exacerbate supply disruptions caused by Iran's stranglehold on the Strait of Hormuz.

"A Kuwaiti oil tanker was attacked in the Strait of Hormuz northeast of Oman by an unknown projectile," ANZ Research analysts said in a note. "This follows strikes in recent days on vessels owned by Dynacom Tankers Management," the ANZ analysts said.

This has left the Strait of Hormuz "deserted, with no ships observed transiting the waterway on Tuesday," they added.

Write to Ronnie Harui at ronnie.harui@wsj.com

(END) Dow Jones Newswires

July 21, 2026 21:14 ET (01:14 GMT)

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Asian Equities Rise as Strong Rebound in Chip Stocks Spurs Risk Appetite

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