HK joins regional markets in rising as oil fears ease

Sep 21, 2026

Share markets edged higher in Asia on Monday as AI's insatiable demand for data buoyed chipmakers, and oil eased on reports more oil was finding its way out of the Middle East than previously thought despite the ongoing conflict in the Gulf. In Hong Kong, the benchmark Hang Seng Index opened down two points, or 0.01 percent, at 24,748 before sharply reversing direction to be 140 points up at one stage in early trading. The tech index slipped three points, or 0.08 percent, to 4,401 while the China enterprises index was up four points, or 0.05 percent, at 8,229. Up north, the benchmark Shanghai Composite Index opened up eight points, or 0.21 percent, at 3,920. The Shenzhen Component Index was 75 points, or 0.55 percent, higher at 13,716 while the ChiNext Index was up 0.93 percent at 3,403. With the Nikkei closed for a national holiday, the Kospi in Seoul opened up 44 points, or 0.64 percent, at 6,938. Bond markets remained tense after a vicious selloff saw US two-year yields jump 36 basis points in the past two weeks to heights not seen since mid-2024 at 4.7604 percent. Hawkish guidance from the Federal Reserve last week has futures wagering on a 56 percent chance it will hike rates again in October, with a move by year-end considered a done deal. "Tightening cycles are generally front-loaded, and the Fed almost never stops after one hike," wrote analysts at BofA in a note. "With nominal consumer spending up 6.3 percent on the year, well above the five percent level historically associated with above-target core inflation, the Fed has little choice but to restrain demand." "Thus, we are retaining our call for just two more hikes, in October and December." Central banks in the EU, UK, Japan, Australia and New Zealand are also expected to tighten again by year-end. The Swiss National Bank, Sweden's Riksbank and Norges Bank hold policy meetings on Thursday, but all are seen holding steady for now. Bonds have also been dogged by deficit worries with the risk premium on French debt spiking on Friday to its widest since the euro zone debt crisis. German debt could come under pressure later on Monday after Chancellor Friedrich Merz's mainstream conservative party suffered its worst election results since 1949. The news kept the euro flat at US$1.1480, having shed almost one percent last week as the dollar gained broadly. Oil prices eased even as Iran and the United States exchanged new threats and after the Houthis attacked Saudi Arabia's capital. Brent fell 2.1 percent to US$101.63 a barrel, while US crude dropped 2.1 percent to US$98.15. Data from analytics firm Kpler showed exports from the Opec kingpin had recovered to just over four million barrels per day so far in September after slumping to 2.4 million bpd in August, the lowest since at least 2013. (Reuters/Xinhua) Edited by Tony Sabine

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