Asian markets trade mixed on Xi-Trump meeting watch, rate hike bets

September 24, 2026 (MLN): Asian markets traded mixed on Thursday, with investors monitoring developments surrounding the expected meeting between Chinese President Xi Jinping and U.S. President Donald Trump for signals on the future direction of U.S.-China trade relations.

Japan’s Nikkei 225 gained 0.64% after reopening from a three-day holiday, while the broader Topix declined 0.17%, according to CNBC.

Australia’s S&P/ASX 200 fell 1.33%, while Hong Kong’s Hang Seng index slipped 0.29% and mainland China’s CSI 300 declined 0.79%. South Korean markets remained closed for a holiday.

Before the Japanese market reopened, Nikkei futures indicated gains, with Chicago futures at 66,060 and Osaka futures at 65,940, compared with the index’s previous close of 65,018.95.

Hang Seng futures stood at 24,709 against the previous close of 24,834.12, while S&P/ASX 200 futures were at 8,706 compared with the prior close of 8,765.30.

Market sentiment was also influenced by continued tensions between the United States and Iran. Iranian President Masoud Pezeshkian, addressing the United Nations General Assembly, blamed the U.S. and Israel for contributing to global instability and said Iran would continue to resist.

In U.S. markets, Treasury yields climbed sharply, with the benchmark 10-year Treasury yield rising to 5.135%, its highest level since July 2007. The two-year Treasury yield also increased to 4.947%, marking its highest level since May 2024.

The rise in yields came as expectations for further U.S. interest-rate increases strengthened. Fed funds futures indicated a more than 68% probability of another rate hike in October, compared with around 49% a week earlier.

Higher borrowing costs are adding pressure to consumers, particularly as fuel prices remain elevated. Oil prices also advanced on Wednesday, with Brent crude settling 3.9% higher at $103.08 per barrel, while West Texas Intermediate gained 1.8% to $92.16.

Meanwhile, stronger-than-expected U.S. business activity data pointed to continued momentum in the economy. However, analysts noted that supply-chain constraints and higher fuel and transportation costs could add to inflationary pressures.

Investors will now focus on weekly U.S. jobless claims for further indications about labor-market conditions. On the corporate earnings front, Darden Restaurants and Costco Wholesale are scheduled to report quarterly results.

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