KOSPI up 3.8%, Nikkei up 3.7% as Asian markets recover July losses

South Korea's KOSPI closed Wednesday's session at 6,598 points, up 3.8%, while Japan's Nikkei 225 gained 3.7% to finish at 66,300 — its highest level in two weeks. The rally was driven by Tuesday's record closes on Wall Street and a sharp drop in oil prices following news of a potential deal to reopen the Strait of Hormuz. Investors are also watching the return of AI stock momentum.