Asian markets rise on AI demand, US-China trade optimism

21/09/2026 11:53 AST

Asian stock markets mostly rose on Monday morning, lifted by global demand for artificial intelligence technology and positive signals from weekend trade talks between Chinese and US officials. Global stocks finished last week mixed as central banks moved to curb inflation, including the US Federal Reserve's decision on Wednesday to lift interest rates.

US and Chinese economic officials met on Sunday for closely watched talks on trade and AI, ahead of a planned summit on Thursday between US President Donald Trump and Chinese President Xi Jinping in Washington. US Treasury Secretary Scott Bessent said that after lengthy conversations the two countries had discussed setting up a channel to communicate on AI issues, called the "US-China AI dialogue". Chinese state media described the talks as "candid, in-depth and constructive".

Hong Kong's main index was up half a percent an hour into trading on Monday morning. South Korea's tech-heavy benchmark surged 1.5 percent and shares in Shanghai gained 0.5 percent. Tokyo was closed for a public holiday, while Sydney's main index was down slightly.

"Scott Bessent and Chinese Vice Premier He Lifeng have already laid the groundwork (for the Trump-Xi meeting) in New York, with trade, investment and artificial intelligence on the table, but this is not a market waiting for a grand bargain," wrote Stephen Innes at Quintex Intel. "It is waiting to see whether both sides can keep the next trade grenade in the drawer."

Pressure on monetary authorities worldwide has increased in recent months as oil prices remain elevated because of the war between the United States and Iran, which shows little sign of ending soon. In a widely expected move, the Bank of Japan raised interest rates on Friday to a three-decade high, but the yen sank against the dollar on concerns the pace of hikes may be slower than expected. That followed earlier tightening this month by the European Central Bank and the Federal Reserve.

Oil prices fell on Monday morning, adding to Friday's declines, on hopes that Saudi Arabia was moving to restore about half of its crude shipments within days after they were disrupted by the stoppage of its East-West pipeline to the Red Sea. Both major contracts remain around $100 a barrel, well above pre-war levels.

Key figures at around 0230 GMT
West Texas Intermediate: DOWN 2.1 percent at $98.19 per barrel Brent North Sea Crude: DOWN 2.0 percent at $101.77 per barrel Hong Kong - Hang Seng Index: UP 0.5 percent at 24,875.93 Shanghai - Composite: UP 0.5 percent at 3,932.64 Tokyo - Nikkei 225: closed for a holiday Dollar/yen: UP at 156.83 yen from 156.73 yen on Friday Euro/dollar: DOWN at $1.1482 from $1.1487 Pound/dollar: DOWN at $1.3386 from $1.3395 Euro/pound: UP at 85.78 pence from 85.76 pence.

AFP