Asian factories lose two percent of profits for every ten dollar oil spike

The stock markets in Seoul and Tokyo act like a giant barometer for the price of oil. In South Korea, the Kospi index is so sensitive to energy costs that a ten-dollar increase in the price of a barrel of Brent crude can slash corporate earnings by two percent across the board. This happens because major manufacturers, from semiconductor plants to car makers, rely on a constant flow of petrochemicals through the Strait of Hormuz to keep their assembly lines moving.