RIETI Report February 20, 2026

How Oil Prices Impact Asian Economies: Evidence from the stock market

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Dear Readers,

Welcome to RIETI Report. This bi-weekly newsletter will keep you updated with the recent columns, event information and research results by RIETI fellows and other leading economists in Japan and around the world.

In this edition, we are featuring topics related to energy transition. East Asia’s energy supply, including Japan’s, is still dominated by fossil fuels, leaving economies exposed to volatile oil prices. To address these vulnerabilities, RIETI Senior Fellow Dr. Willem Thorbecke, in his latest column, calls for a shift toward renewable energy sources, offering practical implications for firms and policymakers in the region.

We hope you will enjoy it. If you have any feedback, we would love to hear from you (news-info@rieti.go.jp).
Editors of RIETI Report (Facebook: @en.RIETI / X: @RIETIenglish / URL: https://www.rieti.go.jp/en/)

This month's featured article

How Oil Prices Impact Asian Economies: Evidence from the stock market

Willem THORBECKESenior fellow, RIETI

Fossil fuels comprise the lion’s share of East Asia’s energy supply. For Japan, 83% comes from fossil fuel; for Indonesia, 78%; for South Korea, 79%; and for Taiwan 92%. Oil is the primary source, with 50% of Japan’s energy consumption; 41% of Indonesia’s consumption; and 51% of Korea and Taiwan’s consumption coming from oil. For Japan, 100% of its crude oil supply comes from imports; for Indonesia 37% comes from imports; and for Korea and Taiwan 99% comes from imports. Given the importance of oil in their energy matrices, how do oil prices impact Asian economies?

>>> Read the full article
https://www.rieti.go.jp/en/columns/a01_0802.html

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