Share markets across Asia declined on Monday, September 14, 2026, as investors reacted to rising oil prices and anticipated interest rate increases in the United States and Japan. Technology stocks linked to artificial intelligence (AI) saw losses following calls from leaders at OpenAI and Anthropic to slow development to manage potential safety risks. Japan's Nikkei index fell 1.0%, South Korea's KOSPI dropped 3.2%, and Chinese blue-chip stocks eased 0.5%.
The decline in equities coincided with a spike in energy costs. Brent crude futures rose as much as 3.1% to $107.84 a barrel, while U.S. crude increased 2.8% to $102.85. The gains followed reports of new strikes on Saudi Arabian oil infrastructure and shipping in the Gulf, including an attack on a Saudi pipeline and advancements by Houthi forces in Yemen. A meeting in Oman between Iran and Gulf Arab states to discuss the Strait of Hormuz, scheduled for Monday, was postponed.
Financial markets have priced in an 86% chance of a rate hike by the U.S. Federal Reserve following a consumer price report on Friday, September 11. Analysts at JPMorgan stated they expect a 25-basis-point increase on Wednesday, marking the first hike since mid-2023. Similarly, there is a 76% market expectation that the Bank of Japan will raise its cash rate to 1.25% on Friday, September 18, as it seeks to prevent a relapse in the yen.
The MSCI index outside Japan fell 1.1%. In Japan, where the Bank of Japan (BOJ) is expected to consider raising rates to 1.25% this Friday, the yen recently recovered from a 40-year low. While Goldman Sachs analysts suggest that strong corporate earnings may eventually support Wall Street, they noted that the S&P 500 has historically seen an average return of -2% in the three months following the start of a hiking cycle.
The Federal Reserve's rate decision is expected on Wednesday, September 16, followed by the Bank of England's rate meeting on Thursday, September 17, and the Bank of Japan's decision on Friday, September 18. Stock and commodity markets will likely remain volatile as these deadlines approach.