Asian share markets generally declined on Monday, September 28, 2026, as oil prices increased and bond yields remained elevated. The market activity followed a weekend during which U.S. President Donald Trump rejected an Iranian proposal to reopen the Strait of Hormuz. Investors prepared for a week of economic data, including U.S. readings on inflation, gross domestic product (GDP), and employment.
Over the weekend, President Trump stated that he rejected the Iranian peace plan because he believed Tehran was seeking a deal out of desperation, though he noted that discussions would continue this week. Iranian officials have maintained a preference for a diplomatic solution. Tensions involving shipping in the Middle East have contributed to oil prices rising above $100 per barrel, with Brent futures reaching $107.16 and U.S. crude futures reaching $94.16.
In Asian markets, South Korea's KOSPI fell 2.0%, and Chinese blue chips on the CSI300 declined 1.9% to reach a one-year low. In the U.S., 30-year Treasury yields rose to 5.5173%, their highest level since 2004. These moves coincide with reports that U.S. lawmakers introduced legislation to prevent Chinese-made components from being used in sensitive government data centers, which affected technology stocks.
Brent oil prices have gained nearly 18% so far this month, contributing to diesel prices reaching all-time highs. High diesel costs specifically raise the risk that inflation will remain a persistent factor in the global economy, influencing wage demands and purchasing power.
The market shift also reflects approximately 68% of investors who now expect the Federal Reserve to raise interest rates for a second consecutive meeting in October. In Japan, the dollar rose to 157.75 yen, a move that followed concerns expressed by the U.S. about yen weakness. Meanwhile, tech firms seeking to expand their artificial intelligence (AI) infrastructure face increased borrowing costs due to surging bond yields.
Future policy will be influenced by several upcoming data releases. The U.S. Labor Department is scheduled to release the September payrolls report on Friday, October 2, which is expected to show a gain of 85,000 jobs. Additionally, the Reserve Bank of Australia is scheduled to meet on Tuesday, September 29, with markets anticipating a potential rate hike. In China, industrial profit growth slowed as of August, reflecting weakness in domestic demand. Markets will continue to monitor the U.S. and Iran for any progress on diplomatic talks throughout the week.