Asian Stocks Rise Amid AI Demand, Oil Prices Weaken

Asian stock markets rose on Monday (21/9) due to increased demand for semiconductors driven by artificial intelligence developments, which boosted chip shares. Meanwhile, oil prices weakened after reports indicated more Middle Eastern oil was flowing into the market amid the ongoing Gulf region conflict.

The Japanese yen was weaker at 156.67 to the US dollar as investors remained alert to the possibility of the Bank of Japan intervening in thin market conditions. However, this caution did not affect stock performance, with South Korea's tech-heavy index rising 1.5% and China's blue-chip CSI300 index gaining 0.6%.

Bond markets remained under pressure as US two-year government bond yields rose to 4.7604%, their highest level since mid-2024. More hawkish policy guidance from the Federal Reserve led markets to price in a 56% chance of another rate hike in October, with Bank of America analysts predicting two additional rate hikes by year-end.

Concerns over budget deficits weighed on bond markets, particularly for French and German government bonds. Oil prices fell despite renewed tensions between Iran and the US, as data showed Saudi Arabian oil exports had recovered to 4 million barrels per day in September.