Asian markets — week ending September 25, 2026

The week was mixed but generally defensive across Asia. The common macro pressures were oil above US$100, sharply higher long-term U.S. Treasury yields, a stronger U.S. dollar, and uncertainty around U.S.–Iran and U.S.–China relations. Reuters noted that longer-dated U.S. yields reached two-decade highs, while Brent was around US$105/bbl.

Index	Sept. 25 close	Weekly move	Main story
ASX 200	8,665	~−0.7%	Oil/yields + weakness in tech, lithium & property
Nikkei 225	66,364	+2.1%	AI/chips + dividend buying
Nifty 50	23,140.50	−0.88%	Oil, yields & foreign outflows
Hang Seng	24,510	~−1.0%	China uncertainty + tech/insurance selling
Shanghai Composite	3,888.37	~−0.6%	Pre-holiday caution & limited U.S.–China breakthrough

Weekly figures are consistent with the Sept. 25 market summaries; Shanghai and Hong Kong were affected by the Mid-Autumn holiday, while Japan’s week was holiday-shortened.

🇦🇺 ASX 200 — defensive pressure

The ASX 200 fell about 0.7% for the week, finishing Friday at 8,665, its lowest level since June. Friday alone was −0.43%. M

The interesting part was the sector split:

• Technology fell 1.66% Friday.
• Consumer discretionary fell 1.37%.
• Utilities fell 1.25%.
• Materials fell 0.84%.
• Financials actually gained 0.27%.
• Lithium miners were hit as Chinese lithium-carbonate futures weakened.
• Wealth-platform stocks were pressured by developments surrounding a First Guardian class action.

What it means: Australia’s market is particularly sensitive to the combination of commodity prices + China + global bond yields. Higher oil helps energy producers but raises inflation concerns; weaker Chinese commodity demand hurts parts of Australia’s materials complex.

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🇯🇵 Nikkei — the standout

Japan was the clear positive outlier.

The Nikkei 225 gained just over 2% for the holiday-shortened week, closing Friday at 66,364.20, after gaining 1.30% on Friday alone. IIndo Premier Sekuritas

Two forces dominated:

1. AI/chip enthusiasm

Tokyo Electron rose 4.82% and Advantest 2.84%, while Ibiden gained 4.2% Friday after a much larger gain the previous session. Semiconductor-related companies were major contributors. IIndo Premier Sekuritas

2. Dividend buying

Investors were buying shares ahead of the deadline for qualifying for Japan’s mid-term dividends. Banks were particularly strong; the TSE banking sector rose 4.08% Friday. IIndo Premier Sekuritas

There was also an important bond-market development: Japan’s 10-year government bond yield reached 3.075%, its highest since 1996, as Japanese markets reopened after the Silver Week holiday.

Bottom line: Japan’s equity market was able to shrug off the global bond/yield pressure because AI/chip momentum and dividend demand were powerful enough to dominate during the week.

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🇮🇳 Nifty 50 — oil is the problem

The Nifty 50 fell 0.88%, ending at 23,140.50. More importantly, this was its seventh consecutive weekly decline.

The principal macro problem for India is oil.

India imports a substantial amount of its energy, so higher crude prices can:

• increase India’s import bill;
• put pressure on the rupee;
• increase inflation concerns;
• keep Indian bond yields elevated;
• reduce expectations for easier monetary policy;
• squeeze corporate margins and consumers.

At the same time, elevated U.S. Treasury yields encouraged global investors to remain cautious toward emerging-market equities. Reuters specifically highlighted high oil prices, rising bond yields and foreign fund outflows as major pressures on Indian equities. MMarketScreener Canada

The Nifty’s seven-week losing streak is notable: Reuters reported that stretches of seven or more weekly declines had occurred only four times in the preceding 25 years, with the previous episodes including 2020, 2008 and 2001. MMarketScreener Canada

Bottom line: India wasn’t suffering from a China-style growth shock; it was primarily a macro/valuation/liquidity problem, with oil and global yields working against equities.

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🇭🇰 Hang Seng — China uncertainty returns

The Hang Seng fell about 1% for the week, finishing Friday at 24,510.09, its lowest level in two months. Friday’s decline was also about 1%. IIndo Premier Sekuritas

The immediate catalyst was uncertainty following the Trump–Xi summit.

The two sides extended their trade truce, but investors received limited evidence of breakthroughs on:

• AI and technology;
• trade;
• Taiwan;
• investment;
• Iran/geopolitical issues. IIndo Premier Sekuritas

Technology and insurance stocks led Friday’s decline: AIA fell 2.7% and Alibaba 1.5%. IIndo Premier Sekuritas

An important market-structure issue also mattered: mainland China was closed Friday and southbound Stock Connect trading was shut, producing unusually thin Hong Kong trading.

Bottom line: Hong Kong investors wanted more concrete evidence from the U.S.–China meeting. The extension of the truce reduced some tail risk, but it didn’t remove the underlying technology/trade/geopolitical disputes.

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🇨🇳 Shanghai Composite — quiet, cautious week

The Shanghai Composite finished at 3,888.37, with the weekly change around −0.6%.

The number needs some qualification because mainland Chinese markets were closed Friday for the Mid-Autumn Festival. They were scheduled to reopen Monday for only three trading sessions before the National Day holiday.

So Shanghai didn’t get a Friday session in which investors could directly react to the final Trump–Xi developments.

That makes the Hang Seng a more immediate indicator of how investors interpreted the summit at the end of the week.

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The big picture

I’d characterize the week as a three-way split:

Japan = AI + dividends → ↑

Australia/India = oil + yields → ↓

Hong Kong/China = U.S.–China uncertainty + holidays → ↓

The common denominator was the global bond market. U.S. long-term yields surged, with the 10-year around 5.2% and the 30-year around 5.48% late in the week. At the same time, Brent remained around US$105.

That combination is important because it raises the discount rate applied to equities while simultaneously increasing inflation concerns. High-growth/long-duration stocks are particularly sensitive to higher yields, while oil-importing economies such as India face an additional earnings/inflation problem.

One-line takeaway

Asia’s week was not a broad risk-off collapse: Japan’s AI-led rally stood out, while Australia and India were squeezed by oil and yields, and Chinese/Hong Kong equities remained constrained by unresolved U.S.–China issues and holiday-thinned trading.