Stocks advance after Bessent says talks with China were successful
before Trump-Xi meeting
[September 21, 2026] By
CHAN HO-HIM
HONG KONG (AP) — Asian shares advanced Monday ahead of the expected
meeting between U.S. President Donald Trump and Chinese leader Xi
Jinping this week in Washington, which could cover trade, artificial
intelligence and geopolitics.
U.S. futures were higher after Treasury Secretary Scott Bessent told
reporters following talks Sunday with Chinese Vice Premier He Lifeng in
New York that the U.S. had “a very successful engagement” with the
Chinese side.
Technology stocks in Asia also moved higher on the AI boom even as
American tech leaders called for a slowdown in AI development over
safety concerns. South Korea’s Kospi rose 1.7% to 7,007.72. Samsung
Electronics jumped 5%, while memory chipmaker SK Hynix climbed 0.6%.
Taiwan’s Taiex was up 1.1%, with its leading AI chipmaker Taiwan
Semiconductor Manufacturing Co., or TSMC, adding 0.8%.
Hong Kong’s Hang Seng advanced 0.9% to 24,975.58. The Shanghai Composite
index gained 1% to 3,949.91.
Markets in Japan were closed Monday and will remain closed through
Wednesday for holidays.
Australia’s S&P/ASX 200 was almost unchanged at 8,731.90.
India’s Sensex rose 0.7%.
On Sunday, Bessent said talks with China touched on trade and AI. China
and the United States have been discussing reciprocal tariff reductions
on $30 billion worth of goods from each side.
In Beijing, China’s Foreign Ministry on Monday confirmed that Xi will
pay a state visit to the U.S. between Sept. 23 and 25. Experts and
policymakers believe trade, tariffs, AI safety, among other items, are
likely to be on the agenda. The war in Iran and developments in the
Middle East and ties between China and Iran could also be discussed.
Oil prices fell more than 2% early Monday as vessel traffic and energy
flows through the Strait of Hormuz picked up, although the Strait has
remained largely closed and uncertainty persisted over U.S.-Iran
tensions. Tensions between Saudi Arabia and the Iran-backed Houthis and
Saudi Arabia's closure of a key oil pipeline also continued to add
pressure to global oil supplies.
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A screen shows the Korea Composite Stock Price Index (KOSPI) in the
foreign exchange dealing room at the Hana Bank headquarters in
Seoul, South Korea, Monday, Sept. 21, 2026. (AP Photo/Ahn Young-joon)
 Brent crude, the international
standard, fell 2.1% to $101.65 per barrel. It was at roughly $72 a
barrel in late February, before the start of the war in Iran.
Benchmark U.S. crude lost 2.3% to $93.86 per barrel.
Oil supply concerns remain elevated, ING commodities strategists Ewa
Manthey and Warren Patterson wrote in a commentary Monday. However,
they said profit-taking by investors after the recent jump in oil
prices, together with hopes for constructive discussions at this
week’s U.N. General Assembly and at the Trump-Xi meeting, helped
improve market sentiment.
The U.S. dollar rose to 157.25 Japanese yen from 156.81 yen. The
euro was trading at $1.1473, down from $1.1483.
Wall Street’s benchmark S&P 500 added 0.2% on Friday. The Dow Jones
Industrial Average edged down 0.2%, and the technology-heavy Nasdaq
composite gained 0.4%.
Investors are also watching the bond market as the yield on the U.S.
10-year Treasury hit 5% and the Federal Reserve last week decided to
raise rates for the first time in three years. The yield on the U.S.
10-year Treasury was at around 4.97% early Monday. The Bank of Japan
last week also raised rates to a 31-year high.
Government bond yields have been elevated since the war also because
of growing inflationary pressure from the war-driven energy shock as
well as rising U.S. national debt.
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