Newsquawk Daily Asia-Pac Opening News - 22nd September 2026

• US stocks rallied on Monday, with much of the upside led by Meta (META), resulting in Nasdaq outperformance. Meta's PT was upgraded at Wells Fargo, with the desk citing a strong start for its Muse AI agent, which in turn supported chip names such as INTC and AMD amid expectations for stronger CPU demand given high Muse usage rates. The majority of sectors were higher, with Communication Services, Technology and Consumer Discretionary outperforming, while Energy, Utilities and Consumer Staples lagged. Crude prices tumbled amid hopes for diplomatic progress at the UN General Assembly this week, with Trump noting he is open to meeting Iranian President Pezeshkian. Participants will also be watching the outcome of the Trump/Xi meeting for any developments on trade, and Treasury Secretary Bessent noted that the US is looking to bring in more everyday items from China, while he added that energy products on the US side and medical devices on the Chinese side could be suitable for tariff reductions.
• USD was broadly firmer against peers as markets held onto the view of another rate hike this year despite the decline in oil prices today due to diplomatic hopes. Fedspeak from Goolsbee (2027 voter) and Musalem (2028 voter) reinforced expectations of another hike this year, with Musalem arguing that without further policy restraint, it is more likely inflation will remain substantially above the 2% target 18 months from now, while both acknowledged that inflation is driven by both supply and demand. The US data calendar this week is thin, leaving most focus on the UN General Assembly and the Trump-Xi summit.
• Looking ahead, highlights include Comments from RBA Governor Bullock and Japan Holiday Closure.

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SNAPSHOT

STOCKS
S&P 500	+1.5%	Nasdaq Comp.	+2.3%
DJIA	+0.7%	Russell 2000	+0.5%
ES Dec'26	+1.5%	RTY Dec'26	+0.6%
NQ Dec'26	+2.9%	YM Dec'26	+0.7%

FX
DXY	+0.2% (100.40)	EUR/USD	-0.2%
USD/JPY	+0.3%	GBP/USD	-0.2%

BONDS
US T-Note Dec'26	+8 ticks	10yr Bund Dec'26	+69 ticks
US 10yr Yield	4.95%	German 10yr Yield	3.45%

ENERGY & METALS
WTI Nov'26	-4.3%	Brent Nov'26	-3.9%
Spot Gold	-0.8%	LME Copper	+1.0%

CRYPTO
Bitcoin	+6.8%	Ethereum	+4.7%

As of 21:50BST/16:50EDT

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LOOKING AHEAD

• Highlights include Comments from RBA Governor Bullock and Japan Holiday Closure.
• Click for the Newsquawk Week Ahead.

IRAN CONFLICT

• US President Trump told Fox TV over the weekend that very big things are going to be happening in the not-so-distant future regarding Iran.
• US President Trump reportedly considered ordering strikes against the Houthis in Yemen over the weekend before deciding to hold off for now, according to two US officials cited by Axios. It was separately reported that Trump spoke by phone with Yemeni President Al-Alimi on Sunday, with Yemen requesting US support for its government against the Houthis, although Trump made no commitment to provide military support.
• US VP Vance said Iran will be discussed further at the UN and that he is working to protect the US Navy, while he added that oil continues to flow normally and the administration will do its best to provide relief on gasoline prices.
• US Treasury Secretary Bessent said he could not say how long the conflict will last, and the US is applying economic pressure on Iran like never before, while he added all Iranian airlines will be shut down worldwide on Sept. 23rd and that he discussed Iran with China.
• USTR Greer said nothing is off the table regarding Iran-related sanctions.
• US Ambassador to the UN Waltz said US President Trump remains willing to engage in talks, adding that Iran must return to the negotiating table.
• IRGC spokesperson said US intelligence centres are within Iran's reach, according to Tasnim. It was separately reported that an IRGC spokesperson said there is no communication between the IRGC and the US, adding that the IRGC does not engage in diplomacy, according to IRIB News.
• Iranian spokesperson reiterated that the Strait of Hormuz will remain closed until Iran's seven conditions under the Islamabad agreement are met, according to SNN.
• Iran reportedly said resuming talks to end the war with the US depends on the Trump administration meeting seven new conditions, according to a senior Iranian political source.
• Pakistani Interior Minister is scheduled to meet other Iranian officials during his visit to Iran, after meeting with the Iranian Interior Minister, according to Tehran Times. Pakistan's Interior Minister's trip to Iran is unrelated to Iran-US matters and will focus on bilateral relations and cooperation, with Pakistan not carrying a message between Iran and the US, according to Tasnim.
• Pakistan said its mediation between the US and Iran reflects its commitment to resolving disputes through dialogue.
• Qatar Foreign Ministry spokesperson said Doha is trying to mediate and open the way for talks between Iran and the US, while it is trying to facilitate the achievement of an agreement, even in the short term, between Washington and Tehran.
• Gulf states have called for a reset on Iran, with the United Arab Emirates urging a "new mindset" and Qatar advocating for a regional "security framework" with Tehran, according to the FT.
• Houthi leader said he is ready for a fair deal to end the Saudi conflict, while a Houthi spokesperson said recent Saudi aggression will not go unanswered.
• Houthi official warned that Egypt, Turkey and Pakistan will likely be targeted in the next stage, saying the targeting of Iran by its enemies will not be limited to the country's borders.
• Yemen's National Delegation met the UN envoy in Muscat and said Saudi Arabia has refused to end the blockade of Yemeni airports and ports, adding that a solution remains possible through addressing humanitarian demands, according to Al Mayadeen.
• UK is reportedly close to agreeing to help the Saudi military counter the Houthis.
• Israeli source told Kan News that Israel is not connected to explosions at a Syrian army weapons depot in the Aleppo region.
• UKMTO received a delayed report of an incident on September 21st at 14:30BST/09:30EDT involving an LPG tanker transiting outbound from the Strait of Hormuz.
• US reportedly supported extending the trade truce by six months, while China pushed for a longer extension, according to NYT.

US TRADE

• US stocks rallied on Monday, with much of the upside led by Meta (META), resulting in Nasdaq outperformance. Meta's PT was upgraded at Wells Fargo, with the desk citing a strong start for its Muse AI agent, which in turn supported chip names such as INTC and AMD amid expectations for stronger CPU demand given high Muse usage rates. The majority of sectors were higher, with Communication Services, Technology and Consumer Discretionary outperforming, while Energy, Utilities and Consumer Staples lagged. Crude prices tumbled amid hopes for diplomatic progress at the UN General Assembly this week, with Trump noting he is open to meeting Iranian President Pezeshkian. Participants will also be watching the outcome of the Trump/Xi meeting for any developments on trade, and Treasury Secretary Bessent noted that the US is looking to bring in more everyday items from China, while he added that energy products on the US side and medical devices on the Chinese side could be suitable for tariff reductions.
• SPX +1.49% at 7,765, NDX +2.83% at 30,482, DJI +0.71% at 52,054, RUT +0.52% at 2,875.
• Click here for a detailed summary.

TARIFFS/TRADE

• US President Trump said the US is working on a "massive Deal" to purchase potash from Belarus, adding that pricing would be substantially below what the US currently pays Canada and calling it "very good news" for US farmers and ranchers.
• US Treasury Secretary Bessent said he discussed economics and AI with China and that there are some deliverables, while he added that the two sides started an AI dialogue, will open an incident line on AI and will meet in two months in Shenzhen to discuss AI. Bessent also said Trump and Xi could meet two more times after this week's meeting, while he noted that there were about 12 hours of talks on Sunday. Furthermore, he said tariffs were discussed with China, adding that the US and China are discussing items that could be included in most-favoured-nation tariffs and that the trade truce was a focal point of the talks.
• US and China are working on an agreement to establish a hotline over AI, while also discussing deals to exempt agricultural products, medical supplies and some low-tech electronic goods on both sides, according to Fox News.
• USTR Greer said China is doing what it promised on soybeans, adding that rare earths are coming in but "we'd like higher quantities" and that there is no grand bargain to be had with China. Greer also stated that Boeing (BA) is making progress on finalising its order for 200 Chinese aeroplanes announced earlier this year, according to a Fox interview.
• USTR Greer said Canada's economic growth is slow and that he prefers the US model, adding that Canada wants to double down on globalisation while the US does not.
• More than two-dozen lawmakers reportedly urged US President Trump to maintain the ban on Chinese automakers.
• China's Vice Finance Minister said he talked about trade, investment and AI with the US on Monday.
• Chinese Foreign Minister Wang Yi said China and the EU should not be in a trade war, calling for stronger strategic communications with Germany.
• Japanese PM Takaichi plans to highlight Japan's commitment to US investments and their contribution to the US economy when she meets US President Trump on Tuesday, according to Nikkei.
• Brazilian President Lula said they are negotiating tariffs with the US, and as long as talks are happening, we will not apply our reciprocity law, according to a CNN interview.
• Indian Trade Minister said a trade agreement with New Zealand will provide duty-free access to New Zealand for 100% of India's exports.

NOTABLE HEADLINES

• Fed's Goolsbee (2027 voter) said the Fed must have the courage to fight inflation, adding that he is optimistic the Fed can return inflation to 2% as long as there is no further evidence of overheating demand. Goolsbee said arguments for cheaper federal borrowing costs are one reason Fed independence is important, while evidence on whether inflation reflects overheating demand or supply shocks remains conflicting, and he is still assessing the issue.
• Fed's Goolsbee (2027 voter) said a mix of supply and demand pressures on inflation has more impact on PCE than the destination, adding that historically US long-term rates are not particularly high and he does not think they reflect a loss of confidence in the US. Goolsbee said without the Fed's Summary of Economic Projections, markets would still seek to understand officials' reaction functions, adding that a central banker's role is to respond to economic conditions rather than markets or the President. Goolsbee also said the Fed should consider making the SEP more informative.
• Fed's Collins (2028 voter) said the renewal of combat in the Iran war was a key reason she supported a rate hike last week and pencilled in another rate hike this year but expects rates on hold in 2027. Furthermore, Collins said she did not see the inflation progress she was hoping to see, and stated that geopolitical developments suggest that we could continue to see additional pressures push on the energy side, according to AP.
• Fed's Musalem (2028 voter) said without further policy restraint, it is more likely inflation will remain substantially above the 2% target 18 months from now, while he added that interest rates likely need to climb further to tame inflation that is both demand- and supply-driven.

DATA RECAP

• US Chicago Fed National Activity Index (Aug) -0.04 (Prev. 0.08)

FX

• USD was broadly firmer against peers as markets held onto the view of another rate hike this year despite the decline in oil prices today due to diplomatic hopes. Fedspeak from Goolsbee (2027 voter) and Musalem (2028 voter) reinforced expectations of another hike this year, with Musalem arguing that without further policy restraint, it is more likely inflation will remain substantially above the 2% target 18 months from now, while both acknowledged that inflation is driven by both supply and demand. The US data calendar this week is thin, leaving most focus on the UN General Assembly and the Trump-Xi summit.
• EUR traded lower on USD strength, while a disastrous state election result for Chancellor Merz’s CDU increased the chance of future political instability in the region, although the state election has little impact on the federal government and Chancellor Merz had announced that he intends to stay on.
• GBP declined in choppy trade after hitting resistance at the 1.3400 level, while there were very few pertinent catalysts, although it was reported that US President Trump will challenge UK PM Burnham over Britain’s defence spending when they meet on Tuesday.
• JPY gradually weakened with USD/JPY edging higher above the 157.00 handle, as the greenback was unfazed by the softer yields and lower oil prices, while Japanese participants remain absent from the market through to Wednesday.
• BoC Governor Macklem said if new US tariffs remain in place, Q4 growth could be roughly halved to below 1%, adding that if oil prices remain near USD 100/bbl, inflation is expected to edge higher in coming months. Macklem also stated that fuel prices have risen more than normally expected, reflecting damage to global refining capacity.

FIXED INCOME

• T-notes settled higher with Treasury yields lower across the curve on Monday as oil prices tumbled.

COMMODITIES

• Oil prices were weighed by diplomatic optimism around the US-Iran conflict and continued profit-taking of the strong gains that were seen in early September.
• Saudi Aramco loaded 14mln barrels of crude onto seven VLCCs from Gulf terminals on Sunday, with seven tankers reported to be in the vicinity of Ras Tanura port on Sunday, according to reports citing satellite images.
• Libya's NOC said an armed group closed valve 7 on the Sharara crude pipeline to Zawiya port on Monday, causing a sharp drop in output at the Sharara oilfield.
• US President Trump proposed USD 5bln to kickstart an investment fund to rebuild Gulf energy sites, according to WSJ.
• US President Trump said Russia has unfortunately lost control of its diesel oil industry due to its war with Ukraine.
• US Energy Secretary Wright, Interior Secretary Burgum and other White House officials were working on the issue of diesel prices through the weekend, according to Agricultural Secretary Rollins, who expects an announcement “very soon on some potential actions.”
• Moscow oil refinery halted operations following a Ukrainian drone attack on September 20th, according to reports.

GEOPOLITICAL

MIDDLE EAST

• Factions pledged to cease any military activity that violates the Iraqi state, while the committee tasked with inventorying weapons in Iraq has reached understandings stipulating that the inventory will end in June 2027, reports Al Arabiya citing sources.

RUSSIA-UKRAINE

• Ukraine President Zelensky said Ukraine is ready for a ceasefire if Russia agrees to one too, according to CBC News.
• Ukrainian President Zelensky said there is dialogue with US President Trump and the US to end the conflict, adding that solutions are possible and will be discussed on the sidelines of the UN General Assembly.
• US President Trump reportedly told Ukrainian President Zelensky to stop strikes on Russian refineries, according to the FT, with Trump reportedly emphasising concerns over rising diesel prices.
• Informed Ukraine source does not expect any breakthroughs yet regarding the meeting between US President Trump and Ukraine President Zelensky, but attention is paid to energy de-escalation, reports Ukraine media RBC
• Russia's Press Secretary Peskov said there has been no progress in negotiations on Ukraine yet, while they remain open to further talks, according to IFX.
• Russian Foreign Ministry said Russia is maintaining close contact with Ankara over Turkey's proposal to end the Black Sea conflict.
• Polish Army said it commenced military aviation operations in Polish airspace following a Russian aerial attack on Ukraine.
• Latvia's National Armed Forces said NATO Baltic air policing mission fighters had been activated due to a possible threat in Kraslava airspace.

OTHER

• US, Japan and South Korea released a joint statement affirming a free and open Indo-Pacific and committing to the denuclearisation of North Korea.
• White House official said US President Trump, Denmark's PM Frederiksen and Greenland's PM Nielsen will meet on Tuesday, with the leaders expected to formalise their new agreement to secure and defend the security of Greenland and the US, according to Fox.

ASIA-PAC

NOTABLE HEADLINES

• China's PBoC Governor reiterated plans to implement a moderately loose monetary policy.

EU/UK

NOTABLE HEADLINES

• US President Trump will challenge UK PM Burnham over Britain’s defence spending when the pair meet for the first time in New York on Tuesday, according to The Telegraph.
• BoE's Breeden said it is a question of whether regulation is sufficiently prepared for AI.
• Bundesbank's monthly report said the German economy will expand modestly in Q3 and recover in Q4, while German inflation will remain elevated due to energy and healthcare factors.
• German government spokesperson said the government will not cap fuel prices at any cost and needs to reassess reform plans.