Newsquawk Daily Asia-Pac Opening News - 24th September 2026

US stocks were sold on Wednesday as global yields surged, with the RUT the clear underperformer, while all major indices finished in the red. Sectors were predominantly lower, with Utilities, Communication Services and Consumer Discretionary lagging, while Energy and Industrials outperformed. Semis and memory names were hit, likely reflecting some reversal of the recent Muse-induced strength following Tuesday's releases of GPT Astra 6 and Claude Opus 5.5, while Chinese AI firms were pressured overnight following probes into Moonshot and DeepSeek. The weakness in stocks coincided with a global bond sell-off, with UST yields surging across the curve, particularly at the front end, as participants digested strong and inflationary US Flash PMI data, rising oil prices, further hawkish Fed speak, a very weak 5-year auction and reports surrounding a potential US diesel export ban. USD was firmer today, supported by sharp rises in global yields, stronger-than-expected US data, and growing economic pressure for Europe and APAC FX if the US goes ahead with a US diesel export ban. Additionally, further Fed speak pointed towards another hike, with Governor Barr noting that further rate hikes are likely needed to ensure a timely return to the 2% inflation target. Looking ahead, highlights include Japanese Flash PMIs, Australian Jobs Data, Chinese President Xi visits the US, South Korean Holiday. SNAPSHOT STOCKS S&P 500 -0.8% Nasdaq Comp. -1.1% DJIA -0.7% Russell 2000 -1.8% ES Dec'26 -0.8% RTY Dec'26 -1.9% NQ Dec'26 -0.8% YM Dec'26 -0.8% FX DXY +0.6% (101.09) EUR/USD -0.5% USD/JPY +0.6% GBP/USD -0.7% BONDS US T-Note Dec'26 -31 ticks 10yr Bund Dec'26 -115 ticks US 10yr Yield 5.12% German 10yr Yield 3.55% ENERGY & METALS WTI Nov'26 +2.1% Brent Nov'26 -4.2% Spot Gold -1.7% LME Copper -0.9% CRYPTO Bitcoin -2.0% Ethereum -2.8% As of 21:50BST/16:50EDT LOOKING AHEAD Highlights include Japanese Flash PMIs, Australian Jobs Data, Chinese President Xi visits the US, South Korean Holiday. Click for the Newsquawk Week Ahead. IRAN CONFLICT US reportedly dismissed Iran's Hormuz offer during UN talks, saying Tehran does not control the Strait. US Secretary of State Rubio said the Iran meeting was positive but did not represent a breakthrough, adding that the talks were a continuation of previous discussions and largely involved an exchange of ideas and messages. US Secretary of State Rubio said Washington understands the Strait of Hormuz is an issue and that the US will continue to defend and keep the strait open, while he noted that Iran fired on commercial ships this morning. Rubio also stated that President Trump has several options available, including military options,** and that if there is going to be a deal with Iran, it will involve hard work over a period of time. Iranian President Pezeshkian discussed the US attack on the Minab girls' school, noting that innocent children were killed and that Iran did not target civilian populations, while he added that Iran needs nuclear energy but not a nuclear bomb, and that the nuclear issue cannot be resolved on the battlefield. He said Iran needs to be strong and resist enemies, as well as stated that their military power is defensive and no bombs will go unanswered. Furthermore, he said they cannot allow some parties to have free access to the Strait of Hormuz while using it to attack Iran and that Hormuz cannot be used for the passage of weapons that will be used against Iran. Iranian Foreign Minister Araghchi said he warned European officials against supporting the war crimes of the US and Israel. It was also reported that Araghchi raised concerns with US Secretary of State Rubio about the 'Sanctioning Russia and Iran Act', while his interaction with US Envoy Witkoff occurred without coordination from policymaking bodies or officials, according to Tasnim citing sources. Iranian Foreign Ministry spokesperson said another round of message exchanges and clarifications took place between Iran and the US via a Qatari mediator on Tuesday, adding that Iran clarified its conditions for reviving diplomacy during the two-hour process with the US. Iranian Major General Rezaei said Hormuz will not be reopened as long as Tehran's conditions are not met and that there will be no negotiations, while he added that Iran is not in a hurry to negotiate and that its conditions have been drafted and handed to Qatar and Pakistan. He warned neighbouring countries against stopping Iranian flights and becoming involved in US efforts, saying Iran would halt flights from neighbouring countries that are partners of the US if that occurred. Furthermore, when asked whether Iran wanted to close other straits, he said the Americans themselves would cause other straits to be closed, and noted that Iran was able to explode its missile over the aircraft carrier George Washington for the first time. Iranian senior official said Tehran is reviewing the US response to its proposal to end hostilities, according to Reuters. During indirect talks with the US on Tuesday, reopening the Strait of Hormuz and lifting the US blockade were discussed. Iran's key priorities are permanently ending hostilities and lifting the US naval blockade, although significant differences remain between the two sides and diplomacy continues. Diplomatic sources suggested that yesterday's talks between the US and Iran did not achieve the minimum required to resume negotiations, according to Hayom. UKMTO reported an incident within the Strait of Hormuz, in which a cargo vessel was struck by an unknown projectile, with all crew evacuated and two casualties reported, while the vessel was on fire and adrift. Iranian advisers helped the Houthis seize Yemen's Red Sea coast in less than 48 hours. Yemen's Houthis said they will target US interests if Washington supports Saudi-led strikes. US TRADE US stocks were sold on Wednesday as global yields surged, with the RUT the clear underperformer, while all major indices finished in the red. Sectors were predominantly lower, with Utilities, Communication Services and Consumer Discretionary lagging, while Energy and Industrials outperformed. Semis and memory names were hit, likely reflecting some reversal of the recent Muse-induced strength following Tuesday's releases of GPT Astra 6 and Claude Opus 5.5, while Chinese AI firms were pressured overnight following probes into Moonshot and DeepSeek. The weakness in stocks coincided with a global bond sell-off, with UST yields surging across the curve, particularly at the front end, as participants digested strong and inflationary US Flash PMI data, rising oil prices, further hawkish Fed speak, a very weak 5-year auction and reports surrounding a potential US diesel export ban. SPX -0.75% at 7,706, NDX -0.85% at 30,470, DJI -0.68% at 51,517, RUT -1.77% at 2,839. Click here for a detailed summary. TARIFFS/TRADE US Treasury Secretary Bessent said he met Chinese Vice Premier He to conclude their weekend discussions, with the sides finalising the AI-hotline language and other points ahead of the leaders' meeting, while they are comfortable either continuing the Busan arrangement or examining a larger deal. US President Trump administration officials reportedly weigh rolling back the beef import plan, according to Politico. US senators are reportedly seeking to fast-track legislation to ban Chinese vehicles this week as China's Xi visits Washington, according to reports citing a document. NOTABLE HEADLINES Fed's Barr (Voter) said further rate hikes are likely needed to ensure a timely return to the 2% inflation target, while he added that inflation is not clearly trending towards the 2% target in a timely way, economic growth is strong and the labour market is solid. Barr also stated that the Fed was out of position and made an adjustment in the right direction, as well as commented that monetary policy needed to be recalibrated going into the recent policy meeting to reflect risks. Fed's Goolsbee (2027 voter) said it is better to assume that larger negative supply shocks will have a relatively persistent effect on inflation, pointing to tariffs and Covid as examples and saying that may also be happening with oil, adding "we better be careful". US Treasury Secretary Bessent said the private sector is driving America’s economic resurgence. DATA RECAP US S&P Global Manufacturing PMI Flash (Sep) 57 vs. Exp. 53.6 (Prev. 53.9) US S&P Global Services PMI Flash (Sep) 58.7 vs. Exp. 56 (Prev. 56.5) US S&P Global Composite PMI Flash (Sep) 58.4 (Prev. 56) FX USD was firmer today, supported by sharp rises in global yields, stronger-than-expected US data, and growing economic pressure for Europe and APAC FX if the US goes ahead with a US diesel export ban. Additionally, further Fed speak pointed towards another hike, with Governor Barr noting that further rate hikes are likely needed to ensure a timely return to the 2% inflation target. EUR was pressured amid the firmer buck, while the PMI data from the bloc was somewhat mixed but ultimately showcased a resilient European economy. GBP retreated amid underperformance in cyclical currencies and dipped beneath the 1.3300 handle. JPY was among the laggards amid higher oil prices and on the prospects of a diesel ban, while Japanese participants will be returning to the market for the first time this week. South African Interest Rate Decision 7.25% vs. Exp. 7.25% (Prev. 7.00%) FIXED INCOME T-notes settled lower and yields rallied after hawkish PMI data, Fed speak and a woeful 5-year auction, while global bonds were hit on news about a potential US diesel export ban. COMMODITIES Oil prices settled higher as substantial progress between the US and Iran remained absent despite further news out of the US pointing towards a positive meeting between the US and Iran, while there were also conflicting reports regarding a US diesel export ban. US EIA Crude Oil Stocks Change (Sep/18) 2.969M vs. Exp. -0.6M (Prev. -0.64M); SPR -0.405M US President Trump emphasised to Venezuela's Rodriguez the need to keep oil flowing, relations warm, and that elections need to happen, according to Axios citing sources. US President Trump's administration is preparing a plan to ban diesel exports for 90 days, despite divisions within the administration and with the oil industry, in an effort to lower energy prices, according to Politico citing sources. US Energy Secretary Wright said Washington could consider withdrawing from the IEA if there is no agreement on climate issues, while supporting reform of the IEA on such matters instead of withdrawal. Wright separately said a diesel export ban would not work and would raise gasoline and jet fuel prices, while describing natural gas as 'America's Energy Super Power' and expecting natural gas pricing to remain flattish for the next 5-10 years. US Energy Secretary Wright rejected a Politico report stating Trump aides were preparing a 90-day prohibition that could be announced within days, according to the NYP. White House official said reports that the US is considering a diesel export ban are "Fake News". White House official said President Trump makes the decision best for the US and wants to see pump prices fall, adding that all options are being considered. Libya's NOC Chairman said Sharara is now pumping at less than 100k bpd. BHP (BHP AT) said operations at the Escondido mine in Chile have been suspended following an accident. GEOPOLITICAL RUSSIA-UKRAINE US Secretary of State Rubio said Russia and Ukraine have both expressed some interest in a limited ceasefire around energy and grain, while adding that if Russian President Putin attends the G20, it could provide an opportunity to speak with President Trump. Russian Foreign Minister Lavrov and US Secretary of State Rubio discussed the situation in the Middle East, the Transcaucasus, Latin America and the Caribbean, while emphasising the need to restore bilateral relations as soon as possible. An agreement was also reached to continue discussions. Russian presidential envoy heads to the US for new talks with members of Trump's administration, according to sources. Polish army official said a Russian military helicopter briefly entered Polish airspace from Kaliningrad. OTHER US State Department said Secretary of State Rubio met with his Indian counterpart and discussed sanctions that could be levelled against the states that engage economically with Russia and Iran. ASIA-PAC NOTABLE HEADLINES US Democratic senators reportedly sent a letter to President Trump calling for an agreement with China to mutually slow or pause AI development, according to Politico. RBI Deputy Governor Gupta said the current account deficit will continue to shrink ahead, as India's dependence on oil decreases. EU/UK NOTABLE HEADLINES ECB's Lane said there is no major wage response to the energy shock. ECB's Makhlouf said second-round effects from the energy shock are not being seen yet. DATA RECAP UK S&P Global Manufacturing PMI Flash (Sep) 52.0 vs. Exp. 51.5 (Prev. 51.7) UK S&P Global Services PMI Flash (Sep) 52.0 vs. Exp. 52.0 (Prev. 52.5) UK S&P Global Composite PMI Flash (Sep) 51.7 vs. Exp. 52.0 (Prev. 52.5) French S&P Global Manufacturing PMI Flash (Sep) 50.3 vs. Exp. 50.8 (Prev. 51.1) French S&P Global Services PMI Flash (Sep) 51.4 vs. Exp. 48.4 (Prev. 48.0) French S&P Global Composite PMI Flash (Sep) 51.2 vs Exp. 48.7 (Prev. 48.5) German S&P Global Manufacturing PMI Flash (Sep) 53.8 vs. Exp. 54.0 (Prev. 54.3) German S&P Global Services PMI Flash (Sep) 52.9 vs. Exp. 50.0 (Prev. 49.7) German S&P Global Composite PMI Flash (Sep) 53.8 vs. Exp. 51.8 (Prev. 51.8) European S&P Global Manufacturing PMI Flash (Sep) 52.7 vs. Exp. 52.6 (Prev. 52.7) European S&P Global Services PMI Flash (Sep) 53.0 vs. Exp. 51.5 (Prev. 51.6) European S&P Global Composite PMI Flash (Sep) 53.1 vs. Exp. 51.7 (Prev. 52.0)