Market Update
China's Indexes Dropped On AI Concerns, Oil Jumped 3%
Li Chen
14 Sep, 2026
Hong Kong
China's indexes traded down at the start of a new week as investors adjusted their growth outlook for artificial intelligence infrastructure spending.
The Hang Seng Index increased 0.3%, and the mainland-focused CSI 300 Index decreased 0.3% after leading AI firms called for a slowdown in the technology's development.
In the previous week, Hong Kong and mainland China indexes faced heavy selling pressure led by metals and tech stocks as global bond yields continued to advance.
After a week of volatile trading, the Hang Seng index dropped 3.9%, and the CSI 300 Index eased 2%.
Global markets finished the week lower as escalating U.S.-Iran hostilities pushed crude oil prices over $100, fueling inflation and interest rate anxieties. The U.S. 10-year Treasury yield approached 5% and jumped 100 basis points in seven months.
Domestically, investors shifted their attention to a raft of economic data due later in the week, including fixed-asset investment, house prices, industrial output, retail sales, and the jobless rate.
Chinese president Xi Jinping proposed establishing an open-source AI community among BRICS member nations, deepening cooperation in developing large language models.
Prime Minister Narendra Modi chaired the two-day meetings at Bharat Mandapam in New Delhi, attended by the leaders of Russia, China, the UAE, Iran, South Africa, and Malaysia, and delegations from several other nations.
The crude oil price advanced on Monday amid growing worries of supply disruption in the Middle East.
Oil prices surged as much as 3% after Saudi Arabia closed a critical crude pipeline following drone attacks, disrupting a key route used to bypass the Strait of Hormuz.
Brent crude oil price jumped 3% to $108 a barrel after rallying almost 9% last week and reaching a new seven-week high.
China Indexes and Stocks
The Hang Seng Index increased 0.3% to 24,876.27, and the mainland-focused CSI 300 Index decreased 0.3% to 4,495.98.
AI- and semiconductor-linked stocks led decliners in Monday's trading amid weakening confidence in artificial intelligence trade.
Zhongji Innolight decreased 4.9% to ¥880.15, Cambricon Technologies added 0.7% to ¥1,046.94, Victory Giant Technology fell 1.2% to HK $197.20, and Eoptolink Technology declined 4.1% to ¥405.76.
Japan's Indexes Dropped 3% as Oil and Bond Yields Surged
Akira Ito
11 Sep, 2026
Tokyo
Japan's benchmark indexes extended steep weekly losses on Friday as surging oil prices and global bond yields weighed heavily on stocks.
The Nikkei 225 Stock Average dropped nearly 3%, and the broader TOPIX fell as much as 1.9% before recovering in the second half of the session.
Brent crude oil prices per barrel increased by 0.3% to $107.90, as the ongoing war between the U.S. and Israel against Iran is expected to last for several more years.
Moreover, Iran-backed Houthi rebels gained control of a key port in Yemen, lifting risks to Saudi oil tankers traveling through the Red Sea.
The Trump administration officials and U.S. military commanders confirmed that the war on Iran is likely to extend to several more years as the U.S. struggled to replenish missiles and air strike capabilities.
Iran's leadership also confirmed that the Islamic Republic is ready for an extended war despite severe economic costs.
Market sentiment in Japan and Asia was weak after the yield of the U.S. Treasury notes advanced to 4.97%, a sharp escalation after the U.S. producer price inflation accelerated to 5.4% in August from 4.8% in July.
The yen traded at a seven-month high ahead of the Bank of Japan's rate decision next Friday.
Domestically, Japan's producer price inflation remained elevated in August and stayed above the 7% mark for the third consecutive month.
Japan's producer price index rose 7.6% annually in August, following an upwardly revised 7.7% rise in the prior month, which had been the fastest increase since February 2023.
On a monthly basis, the measure of wholesale inflation declined 0.2%, reversing an upwardly revised 0.4% rise in July and marking the first monthly decline in a year.
Prices continued to grow for all components, including food and beverage prices accelerating to 4.3% from 4.0% and chemicals to 13.9% to 13.8%, but petroleum & coal easing to 14.7% from 17.6%.
Japan Indexes and Stocks
The Nikkei 225 Stock Average dropped 2.9% to 63,447.39, and the broader TOPIX declined 0.9% to 4,018.19.
For the week, the Nikkei 225 Stock Average dropped nearly 4%, and the TOPIX decreased 2.8%.
Tech stocks led decliners in Friday's trading as rising bond yields negatively impacted the value of the future earnings stream.
Kioxia Holdings declined 7.7% to ¥53,590.0, Tokyo Electron eased 4% to ¥50,670.0, and Advantest Corp. fell 7.4% to ¥31,420.0.
Nippon Yusen KK advanced 1.7% to ¥7,323.0, Mitsui OSK Lines increased 1.5% to ¥7,085.0, and Kawasaki Kisen Kaisha Ltd. gained 3.4% to ¥3,401.0.
Japan's Indexes Dropped 3% as Oil and Bond Yields Surged
Akira Ito
11 Sep, 2026
Tokyo
Japan's benchmark indexes extended steep weekly losses on Friday as surging oil prices and global bond yields weighed heavily on stocks.
The Nikkei 225 Stock Average dropped nearly 3%, and the broader TOPIX fell as much as 1.9% before recovering in the second half of the session.
Brent crude oil prices per barrel increased by 0.3% to $107.90, as the ongoing war between the U.S. and Israel against Iran is expected to last for several more years.
Moreover, Iran-backed Houthi rebels gained control of a key port in Yemen, lifting risks to Saudi oil tankers traveling through the Red Sea.
The Trump administration officials and U.S. military commanders confirmed that the war on Iran is likely to extend to several more years as the U.S. struggled to replenish missiles and air strike capabilities.
Iran's leadership also confirmed that the Islamic Republic is ready for an extended war despite severe economic costs.
Market sentiment in Japan and Asia was weak after the yield of the U.S. Treasury notes advanced to 4.97%, a sharp escalation after the U.S. producer price inflation accelerated to 5.4% in August from 4.8% in July.
The yen traded at a seven-month high ahead of the Bank of Japan's rate decision next Friday.
Domestically, Japan's producer price inflation remained elevated in August and stayed above the 7% mark for the third consecutive month.
Japan's producer price index rose 7.6% annually in August, following an upwardly revised 7.7% rise in the prior month, which had been the fastest increase since February 2023.
On a monthly basis, the measure of wholesale inflation declined 0.2%, reversing an upwardly revised 0.4% rise in July and marking the first monthly decline in a year.
Prices continued to grow for all components, including food and beverage prices accelerating to 4.3% from 4.0% and chemicals to 13.9% to 13.8%, but petroleum & coal easing to 14.7% from 17.6%.
Japan Indexes and Stocks
The Nikkei 225 Stock Average dropped 2.9% to 63,447.39, and the broader TOPIX declined 0.9% to 4,018.19.
For the week, the Nikkei 225 Stock Average dropped nearly 4%, and the TOPIX decreased 2.8%.
Tech stocks led decliners in Friday's trading as rising bond yields negatively impacted the value of the future earnings stream.
Kioxia Holdings declined 7.7% to ¥53,590.0, Tokyo Electron eased 4% to ¥50,670.0, and Advantest Corp. fell 7.4% to ¥31,420.0.
Nippon Yusen KK advanced 1.7% to ¥7,323.0, Mitsui OSK Lines increased 1.5% to ¥7,085.0, and Kawasaki Kisen Kaisha Ltd. gained 3.4% to ¥3,401.0.
China's Indexes Dropped to One-Month Lows Amid Twin Headwinds
Li Chen
11 Sep, 2026
Hong Kong
China's indexes decreased and fell to one-month lows amid twin headwinds and anxieties related to domestic macroeconomic conditions.
The Hang Seng Index declined 1.1%, and the mainland-focused CSI 300 Index eased 1.6% as crude oil prices rebounded to five-week highs.
Brent crude oil prices per barrel increased by 0.6% to $108.25, as the ongoing war between the U.S. and Israel against Iran is expected to last for several more years.
Moreover, Iran-backed Houthi rebels gained control of a key port in Yemen, lifting risks to Saudi oil tankers traveling through the Red Sea.
The Trump administration officials and U.S. military commanders confirmed that the war on Iran is likely to extend to several more years as the U.S. struggled to replenish missiles and air strike capabilities.
Iran's leadership also confirmed that the Islamic Republic is ready for an extended war despite severe economic costs.
Market sentiment in China and Asia was weak after the yield of the U.S. Treasury notes advanced to 4.97%, a sharp escalation after the U.S. producer price inflation accelerated to 5.4% in August from 4.8% in July.
Domestically, investors shifted their attention to a raft of economic data due next week, including fixed-asset investment, house prices, industrial output, retail sales, and the jobless rate.
China Indexes and Stocks
The Hang Seng Index decreased 1% to 24,694.84, and the CSI 300 Index declined 1.6% to 4,477.74.
For the week, the Hang Seng index dropped 3.9%, and the CSI 300 Index eased 2%.
Resource and technology sector stocks dominated trading in Shanghai and Hong Kong.
Zijin Mining Group declined 8.2% to HK $34.28, Zijin Gold International eased 4.4% to HK $157.0, and PetroChina Group edged up 0.5% to $10.14.
NAURA Technology Group fell 2.8% to ¥620.60, SMIC eased 2.2% to HK $62.15, and CXMT Corp. declined 3.9% to ¥54.96.
China's Indexes Dropped to One-Month Lows Amid Twin Headwinds
Li Chen
11 Sep, 2026
Hong Kong
China's indexes decreased and fell to one-month lows amid twin headwinds and anxieties related to domestic macroeconomic conditions.
The Hang Seng Index declined 1.1%, and the mainland-focused CSI 300 Index eased 1.6% as crude oil prices rebounded to five-week highs.
Brent crude oil prices per barrel increased by 0.6% to $108.25, as the ongoing war between the U.S. and Israel against Iran is expected to last for several more years.
Moreover, Iran-backed Houthi rebels gained control of a key port in Yemen, lifting risks to Saudi oil tankers traveling through the Red Sea.
The Trump administration officials and U.S. military commanders confirmed that the war on Iran is likely to extend to several more years as the U.S. struggled to replenish missiles and air strike capabilities.
Iran's leadership also confirmed that the Islamic Republic is ready for an extended war despite severe economic costs.
Market sentiment in China and Asia was weak after the yield of the U.S. Treasury notes advanced to 4.97%, a sharp escalation after the U.S. producer price inflation accelerated to 5.4% in August from 4.8% in July.
Domestically, investors shifted their attention to a raft of economic data due next week, including fixed-asset investment, house prices, industrial output, retail sales, and the jobless rate.
China Indexes and Stocks
The Hang Seng Index decreased 1% to 24,694.84, and the CSI 300 Index declined 1.6% to 4,477.74.
For the week, the Hang Seng index dropped 3.9%, and the CSI 300 Index eased 2%.
Resource and technology sector stocks dominated trading in Shanghai and Hong Kong.
Zijin Mining Group declined 8.2% to HK $34.28, Zijin Gold International eased 4.4% to HK $157.0, and PetroChina Group edged up 0.5% to $10.14.
NAURA Technology Group fell 2.8% to ¥620.60, SMIC eased 2.2% to HK $62.15, and CXMT Corp. declined 3.9% to ¥54.96.
Rapid Rise In Oil Prices and Steady Gains In Bond Yields Kept U.S. Stocks In Check
Barry Adams
10 Sep, 2026
New York City
Stocks remained under pressure for the third session in a row on Thursday as higher bond yields kept the U.S. stock market under pressure.
The S&P 500 Index increased 0.1%, the tech-heavy Nasdaq Composite declined 0.2%, and the yield on 10-year U.S. Treasury notes advanced to a new 3-year high.
U.S. Treasury yields pushed to fresh multiyear highs after the Treasury Department revealed details of its operation to buy back up to $6 billion in longer-term debt.
The yield on the 10-year Treasury note climbed above 4.86%, tracking its highest point since late 2023.
While Treasury Secretary Scott Bessent focused on controlling the long end of bond yield, investors focused on the persistent supply of new federal government debt, which shows no sign of easing.
Fixed-income investors appeared to shrug off government efforts to lower borrowing costs, focusing instead on rapidly rising federal government debt and sticky macroeconomic trends.
Crude oil futures surged as escalating military clashes between the United States and Iran disrupted key shipping corridors near the Strait of Hormuz.
The West Texas Intermediate crude oil price increased 1.5% to $94.71, and international benchmark Brent crude crossed $102 a barrel, recording its highest settlement level since late May.
Investors are increasingly concerned that an extended energy shock will fuel broader inflation and compel central banks to maintain restrictive monetary policies for longer than previously estimated.
Higher oil prices and rising bond yields dampened sentiment in stock trading as investors worried that higher-for-longer inflation and rising interest rates could dampen broader economic growth for years to come.
Rise In Wholesale Price Signal Persistent Inflation as Oil Prices Continue to Climb
August's producer price inflation increased monthly by 0.4% and 5.4% over a year as higher energy costs filtered through various sectors of the economy.
The measure of wholesale inflation in July edged up monthly 0.1% and increased 4.7% from a year ago, the report from the U.S. Bureau of Labor Statistics showed.
In recent months, inflation has moderated, but it is still high, as consumers are struggling with more expensive groceries, fuel, and other essentials.
Crude oil prices topped $100 a barrel, suggesting inflation is likely to stay elevated in September.
Since the start of the U.S. and Israel war on Iran in late February, the price of a gallon of gasoline has soared 44%, and diesel has skyrocketed 59%, which is used in manufacturing, shipping, and transportation.
The core rate of inflation, which excludes volatile food and energy categories, rose 0.2% from July to August and, compared with a year ago, accelerated to 4.6% from 4.2% in July.
From July to August, food prices increased by 0.1%, and energy prices advanced by 4.2%.
Other items that increased in price include airfares, hospital care, and electronic components, supported by the rapid building of artificial intelligence infrastructure.
The government is scheduled to release the report on consumer price inflation at 8:30 a.m. ET on Friday.
U.S. Movers
Apple Inc. increased 1.1% to $318.81 after the mobile device maker released several new products including the debut of $2,000 foldable iPhone Duo.
American Eagle Outfitters dropped 11.8% to $16.89 after the specialty apparel retailer said comparable sales in the fiscal second quarter ending on August 1 decreased 1%.
Total net revenue increased 8% to $1.38 billion from $1.28 billion, net income jumped $133.7 million from $76.8 million, and diluted earnings per share advanced to 79 cents from 45 cents a year ago.
Comparable sales at American Eagle stores decreased 1%, and at Aerie increased 19%.
The company received $196 million in tariff refunds, and net operating income benefitted by $161 million after adjusting for a $45 million expense related to the pre-sale of tariff refunds and other items.
During the second quarter, the company returned $21 million to shareholders via a quarterly cash dividend of $0.125 per share, paid to shareholders of record as of July 10.
The company estimated fiscal third-quarter comparable sales to rise in "mid-to-high-single-digits" and operating income between $110 million and $115 million.
The teen retailer guided gross margin to remain flat from a year ago, with depreciation and amortization expenses of $55 million.
The teen apparel retailer forecast operating income in the current quarter to range between $110 million and $115 million, substantially lower than the consensus estimate of between $122 million and $124 million.