For the week of Sep 25, global equities diverged as a relentless bond sell-off collided with unshaken AI optimism. In the U.S., a stronger-than-expected PMI print and hawkish Fed rhetoric drove Treasury yields to multi-decade highs, yet resilient tech and communication-services names kept the S&P 500 and Nasdaq in positive territory for the week. China and Hong Kong equities slipped as elevated yields, a Mid-Autumn holiday-shortened trading week, and fading hopes for a broader U.S.-China breakthrough weighed on sentiment, even as AI and pharma names bucked the trend. Singapore stocks extended their weekly advance, with the Straits Times Index rising on strength in banks and industrials though remaining below its early-September record close.
(Refer to the major indices' weekly
performance tables below.)
πΊπΈ United States
Market Overview
U.S. equities
notched a second straight weekly gain even as a punishing sell-off in
Treasuries pushed borrowing costs to their highest levels in two decades. The
Dow Jones Industrial Average (DJI) rose 0.28%, the S&P 500 (SPX) advanced
1.21%, and the Nasdaq Composite (COMP) jumped 2.06%, with strength concentrated
in technology and communication-services names riding excitement around agentic
AI. Weak Treasury auctions and hawkish Fed commentary sent the 30-year yield
above 5.5% and the 10-year above 5.2%, widening credit spreads even as
resilient jobless-claims data underscored a still-firm labor market.
Index Weekly Performance
- Dow Jones Industrial Average (DJI):
+0.28%
- S&P 500 (SPX): +1.21%
- Nasdaq Composite (COMP): +2.06%
Key Highlights and Outlook
1️⃣ Business Activity Hits 62-Month High
S&P
Global's flash September composite PMI jumped to 58.4 from 58.0, the fastest
pace in over five years. Services led at 58.7, a 59-month high, while
manufacturing PMI climbed to 57.0. S&P Global noted the reading implies
economic growth of roughly 4% this quarter.
2️⃣ Bond Sell-Off Sends Yields to Multi-Decade
Highs
A five-year
Treasury auction priced at 5.033%, the highest since 2006, while seven-year
notes cleared 7 basis points above pre-auction levels. The 30-year yield topped
5.5%, its highest since 2004, and the 10-year briefly touched 5.2% as hawkish
Fed commentary and tariff-related inflation fears weighed on demand.
3️⃣ AI Optimism Keeps Tech Rally Alive
Strong
consumer uptake of Meta's new AI agent fueled excitement over agentic AI and
its implications for computing infrastructure demand. Technology and
communication-services stocks outperformed, helping the Nasdaq shrug off the
broader rate backdrop.
4️⃣ Credit Spreads Widen as Loans Hold Firm
Investment-grade
and high-yield credit spreads widened alongside the Treasury rout. The
leveraged loan market was a bright spot, however, attracting meaningful inflows
as floating-rate assets benefited from rising rate-hike expectations.
5️⃣ Labor Market Stays Resilient
Initial
jobless claims came in at 197,000, below the 201,000 consensus, while
continuing claims of 1.72 million also undershot expectations of 1.75 million.
A still-firm labor market gives the Fed room to stay hawkish on inflation.
6️⃣ Small Caps Lag as Growth Outpaces Value
Growth stocks
outperformed value within the large-cap universe, while the small-cap Russell
2000 pulled back as higher rates weighed disproportionately on smaller, more
rate-sensitive companies.
S&P 500 Sectors in Focus
Technology
led S&P 500 sector performance for a second straight week, powered by
continued enthusiasm around agentic AI and strong consumer uptake of Meta's new
AI agent. Communication services and health care also posted solid gains, while
defensive and rate-sensitive sectors bore the brunt of the bond sell-off.
Utilities and energy were the clear laggards, with financials and real estate
also under pressure as higher borrowing costs weighed on valuations. (Refer to
the SPX sector ETF weekly performance table below.)
The S&P
500 held its short-term uptrend despite the bond-market volatility, closing
near 7,743 after gaining 1.21% on the week. The Nasdaq Composite's AI-driven
advance pushed it further up, hit intra-week record at 27,288, while the Dow lagged as
rate-sensitive cyclicals underperformed. With yields still climbing, SPX,
Nasdaq, and DJI charts continue to show a sideways-to-higher consolidation,
with prior swing-low support likely to be tested if the Treasury sell-off
extends into next week.
π Weekly charts:
π¨π³ China / Hong Kong
Market Overview
China and
Hong Kong equities retreated for the week, with mainland shares closed Friday
for the Mid-Autumn Festival and Hong Kong extending losses into the close. The
CSI 300 fell 1.51% and the Shanghai Composite (SSE) declined 0.60% through
Thursday, while the Hang Seng Index (HSI) slipped 0.97%, with the Hang Seng
Tech Index down 1.1% on Friday alone as AI-related, auto, and gaming shares led
losses. Early-week strength in health care and property faded as elevated U.S.
Treasury yields, firm oil prices, and diminishing hopes for a broader
U.S.-China trade breakthrough weighed on sentiment, even as an extension of the
trade truce to January offered some support. (Refer to the major indices'
weekly performance tables above.)
Index Weekly Performance
- CSI 300: -1.51%
- Shanghai Composite (SSE): -0.60%
- Hang Seng Index (HSI): -0.97%
Key Highlights and Outlook
1️⃣ U.S.-China Trade Truce Extended to January
Washington
and Beijing agreed to extend their trade truce by two months to January 10,
2027, preserving the current framework as talks continue. The U.S. continued
pressing China over implementation of prior commitments on agricultural
purchases and rare-earth flows.
2️⃣ Mid-Autumn Holiday Distorts Trading
Mainland
markets were closed Friday for the Mid-Autumn Festival, with the CSI 300 and
Shanghai Composite reflecting Thursday's close. Early-week gains in health
care, property, and select technology names reversed as growth stocks weakened
into Thursday's sell-off.
3️⃣ AI and Pharma Names Buck the Trend
Tencent, WuXi
Biologics, WuXi AppTec, and CSPC Pharma posted strong weekly gains on
AI-monetisation optimism and a growing innovative-drug pipeline, with Innovent
Biologics also outperforming even as the broader index fell.
4️⃣ Hong Kong Exports Surge on AI Demand
Hong Kong's
August exports jumped 53% year-on-year to HKD667.9 billion, the second-highest
monthly value on record, extending a 50.7% surge in July as AI-related
electronics demand stayed robust.
5️⃣ Autos and EV Supply Chain Lead Decliners
BYD, BYD
Electronic, and battery-materials names such as Zijin Mining and Aluminum
Corporation of China led losses, alongside travel and consumer names including
Trip.com and Haidilao, as growth-sensitive sectors underperformed.
Technical Snapshot
The Hang Seng
Index slipped toward the 24,500 level, its lowest close since mid Jul, as
broad-based selling in autos, EVs, and travel names outweighed strength in AI
and pharma. The Hang Seng Tech Index underperformed the broader benchmark,
falling 1.1% on Friday alone as investors rotated out of growth-sensitive
names. With mainland markets closed for the National Day Golden Week from
October 1, HSI volumes are likely to stay thin and choppy over the coming week.
HSI Constituents – Weekly Gainers
Pharmaceutical
and AI-related names led the HSI's advancers, with WuXi Biologics, WuXi AppTec,
and CSPC Pharma among the top gainers as investors rotated into China's
innovative-drug and AI-adjacent plays. Tencent added on continued
AI-monetisation optimism, while New Oriental and Innovent Biologics also posted
solid weekly gains.
Code Company Close (Wk) Wk % YTD % HSI ★ HSI ★ 24,510.09 -0.97% -4.37% 2269 WuXi Bio 53.00 +5.26% +68.58% 2359 WuXi AppTec 209.60 +4.80% +112.36% 1093 CSPC Pharma 9.33 +4.48% +10.68% 700 TencentHTCD 436.60 +4.20% -27.11% 9901 New Oriental 44.88 +3.79% +6.25% 1801 Innovent Bio 99.70 +3.21% +30.75% 1876 Budweiser APAC 6.04 +1.86% -20.49% 1177 Sino Biopharm 5.57 +1.83% -9.87% 688 COLI 12.42 +1.80% +1.39% 6160 BeOne Medicines 216.40 +1.79% +20.69% 12 Henderson Land 26.22 +1.00% -6.82% 291 CR Beer 18.40 +0.99% -29.82% 836 CR Power 18.99 +0.53% +9.71% 1398 ICBC 7.51 +0.20% +19.48% 1997 Wharf REIC 30.54 +0.20% +24.25% 388 HKEX 388.40 +0.10% -4.71% 1 CK Hutchison 67.95 +0.07% +28.33% 1109 CR Land 28.64 +0.00% +5.29% 1044 Hengan 19.70 +0.00% -29.39% 823 Link REIT 37.02 +0.00% +6.56%
HSI Constituents – Weekly Decliners
Consumer, auto, and EV supply-chain names dominated the decliners list, with Zhongsheng, AliHealth, China Hongqiao, and Longfor Properties among the weakest performers. BYD, BYD Electronic, and battery-materials plays such as Zijin Mining and Aluminum Corporation of China also came under pressure, alongside travel and leisure names including Trip.com and Haidilao. (Refer to the Hang Seng Index constituents' weekly performance table below.)
Code Company Close (Wk) Wk % YTD % HSI ★ HSI ★ 24,510.09 -0.97% -4.37% 3988 Bank of ChinaHBND 5.98 -0.08% +34.08% 1038 CK Infra 65.30 -0.15% +13.37% 3 HK & China Gas 7.08 -0.21% +0.93% 1113 CK Asset 46.00 -0.39% +16.99% 9633 Nongfu Spring 38.40 -0.52% -18.02% 16 Sun Hung Kai 107.10 -0.56% +13.09% 939 CCB 9.54 -0.57% +23.99% 2020 ANTA Sports 71.20 -0.70% -11.61% 1929 Chow Tai Fook 10.97 -0.72% -11.46% 941 China MobileHCMD 78.45 -0.76% -3.98% 267 CITIC 12.94 -0.77% +7.30% 316 OOIL 145.10 -0.82% +15.71% 9988 AlibabaHBBD 108.40 -0.82% -24.09% 857 PetroChinaHPCD 9.41 -0.84% +12.29% 883 CNOOC 23.40 -0.85% +9.86% 1099 Sinopharm 14.88 -0.93% -23.46% 2318 Ping AnHPAD 52.70 -0.94% -19.11% 728 China Telecom 4.39 -1.01% -18.55% 669 Techtronic 127.00 -1.09% +41.27% 66 MTR Corp 32.62 -1.09% +9.46% 992 Lenovo 37.16 -1.12% +301.30% 6 Power Assets 59.15 -1.17% +7.25% 9618 JD.comHJDD 103.70 -1.24% -7.08% 2319 China Mengniu Dairy 17.53 -1.35% +17.57% 3968 CM Bank 50.50 -1.37% -4.36% 1209 CR Mixc 37.00 -1.44% -13.83% 9999 NetEase 180.90 -1.47% -15.70% 2 CLP Holdings 76.30 -1.48% +9.63% 288 WH Group 6.50 -1.51% -24.97% 1088 China Shenhua 43.76 -1.57% +12.78% 2388 BOC Hong Kong 51.15 -1.73% +29.76% 101 Hang Lung Prop. 6.49 -1.74% -24.68% 2688 ENN Energy 48.76 -1.85% -29.54% 386 Sinopec 4.42 -1.88% -5.25% 1810 XiaomiHXXD 25.90 -1.89% -34.10% 9992 Pop MartHPPD 152.10 -1.93% -18.97% 3690 MeituanHMTD 71.65 -2.12% -30.64% 175 GeelyHGMD 15.60 -2.13% -12.85% 9888 BaiduHBUD 85.30 -2.18% -35.13% 3692 Hansoh 33.52 -2.27% -7.10% 1024 KuaishouHKUD 30.02 -2.34% -53.06% 5 HSBCHSHD 157.60 -2.48% +28.76% 762 China Unicom 5.58 -2.62% -28.28% 2331 Li Ning 12.24 -2.63% -34.44% 1928 Sands China 11.91 -2.70% -39.23% 2628 China Life 28.58 -2.72% +4.38% 2313 Shenzhou Intl 34.08 -2.74% -44.31% 981 SMICHSMD 63.35 -2.76% -11.34% 1519 J&T Global Express 8.72 -2.79% -16.51% 27 Galaxy Ent. 31.70 -2.82% -17.28% 322 Tingyi 11.37 -2.99% -3.56% 9961 Trip.comHTGD 309.20 -3.19% -44.19% 2382 Sunny Optical 64.90 -3.21% -0.99% 6618 JD Health 35.08 -3.31% -36.79% 1299 AIA Group 73.75 -3.91% -7.70% 6690 Haier 19.77 -3.94% -18.57% 300 Midea 95.35 -3.98% +12.24% 2618 JD Logistics 10.04 -4.11% -12.08% 1211 BYDHYDD 78.10 -4.17% -18.09% 6862 Haidilao 9.08 -4.47% -36.28% 868 Xinyi Glass 7.96 -4.61% -3.75% 285 BYD Electronic 22.66 -4.71% -32.64% 2899 Zijin Mining 32.50 -4.80% -8.86% 2015 Li Auto 45.24 -4.88% -30.24% 2600 Aluminum Corp China 7.69 -5.30% -36.81% 2057 ZTO Express 153.20 -6.01% -5.61% 968 Xinyi Solar 1.92 -6.11% -35.35% 960 Longfor 5.33 -6.16% -37.73% 1378 China Hongqiao 20.72 -6.33% -36.48% 241 AliHealth 2.83 -7.83% -44.06% 881 Zhongsheng 2.90 -8.23% -75.04%
πΈπ¬ Singapore
Market Overview
Singapore
shares extended their weekly advance, with the Straits Times Index (STI) rising
0.97% to close at 5,711.12, up 22.92% year-to-date but still shy of the index's
record close of 5,801.96 set on 4 September 2026. Gains were broad-based, led
by DFI Retail Group, ST Engineering, and the three local banks, while REITs and
rate-sensitive trusts lagged as elevated global bond yields weighed on yield
plays.
Index Weekly Performance
- Straits Times Index (STI): +0.97%
Key Highlights and Outlook
1️⃣ STI Extends Gains, Banks and Industrials
Lead
The STI rose
0.97% to 5,711.12, up 22.92% year-to-date though still below its 4 September
record close of 5,801.96, led by DFI Retail Group (+5.77%), ST Engineering
(+4.22%), and CityDevelopments, with all three local banks also posting solid
weekly gains.
2️⃣ CSE Global Lands Fresh U.S.
Electrification Orders
CSE Global
secured two U.S. electrification order wins worth US$150m spanning LNG and
data-centre power infrastructure, deepening its hyperscaler ties. CGS
International reiterated its Add rating with an unchanged S$1.95 target price.
3️⃣ Corporate Actions in Focus
Keppel placed
its Shanghai unit, Shuju Info Tech, under members' voluntary liquidation,
Addvalue Technologies won shareholder approval to spin off and list its
space-connectivity business on Nasdaq, and Far East Orchard agreed to acquire a
London development site for S$102m.
4️⃣ REITs Underperform on Rate Pressure
Rate-sensitive
REITs and trusts, including CapitaLand Ascendas REIT, Frasers Centrepoint
Trust, and Mapletree Industrial Trust, led decliners as elevated U.S. Treasury
yields continued to weigh on yield plays.
Technical Snapshot
The Straits Times Index closed at 5,711.12, extending its weekly advance while remaining comfortably above its 50-day moving average, though still roughly 1.6% below the record close of 5,801.96 set on 4 September 2026. Breadth was constructive, with roughly half of constituents ending the week higher, led by DFI Retail Group and ST Engineering. (Refer to the STI weekly performance table below.)
Code Company Close (Wk) Wk % YTD % STI ★ STI ★ 5,711.12 +0.97% +22.92% D01 DFI Retail USD 3.30 +5.77% -16.46% S63 ST Engineering 10.87 +4.22% +29.10% C09 CityDev 8.26 +2.61% +3.25% BN4 Keppel 11.30 +2.45% +9.18% C6L SIA 6.65 +2.15% +3.91% O39 OCBC 32.01 +2.01% +61.99% U11 UOB 42.57 +1.89% +21.42% D05 DBS 78.00 +1.48% +38.40% V03 Venture 16.72 +1.33% +10.44% S68 SGX 22.40 +0.90% +32.08% N2IU Mapletree PACT 1.22 +0.83% -17.01% S58 SATS 3.83 +0.52% +0.52% BS6 YZJ Ship SGD 5.19 +0.39% +49.14% U14 UOL 8.46 +0.12% -3.20% 9CI CapLand Invest 2.60 +0.00% -4.06% G13 Genting Sing 0.61 +0.00% -15.17% M44U Mapletree Log Tr 1.10 +0.00% -16.67% Y92 ThaiBev 0.44 +0.00% -4.35% F34 Wilmar 3.68 +0.00% +19.48% U96 Sembcorp Ind 5.87 -0.51% -2.49% H78 HK Land USD 8.57 -0.81% +23.31% 5E2 Seatrium 2.10 -0.94% -2.78% AJBU Keppel DC REIT 2.12 -1.40% -5.78% Z74 Singtel 4.28 -1.61% -5.93% C38U CapLand IntCom Tr 2.24 -2.18% -6.28% J69U Frasers CT 2.05 -2.38% -12.02% A17U CapAscendas REIT 2.28 -2.56% -19.43% ME8U Mapletree Ind Tr 1.86 -2.62% -10.58% BUOU Frasers L&C Tr 0.87 -2.79% -12.56% J36 JMH USD 55.86 -2.92% -18.32%
π Weekly charts:
π
Week Ahead (28 Sep – 2 Oct 2026)
In the U.S.,
the week is dominated by the September jobs report due Friday, alongside JOLTS
job openings on Tuesday, the Fed's preferred PCE inflation gauge and a third
estimate of second-quarter GDP on Wednesday, and the ISM Manufacturing PMI on
Thursday. With the flash PMI already flagging an economic acceleration,
investors will watch whether payrolls and ISM data confirm strength or start to
show cracks from the recent spike in borrowing costs.
Mainland
Chinese markets shut for the National Day Golden Week from October 1 through
October 7, thinning regional liquidity and leaving Hong Kong to trade largely
on its own. Investors will track any follow-through from the U.S.-China trade
truce extension and further AI-monetisation developments at Tencent, Alibaba,
and other index heavyweights.
Singapore's
manufacturing PMI for September is due in the first days of October and will be
watched for signs of continued expansion. With the STI still trading roughly
1.6% below its 4 September record close, attention turns to corporate newsflow
from CSE Global, Keppel, and other index constituents, alongside the region's
response to still-elevated U.S. Treasury yields.
π️ Overarching Watchpoint
The single
biggest swing factor remains the direction of U.S. Treasury yields: with the
10-year above 5.2% and the 30-year above 5.5%, a further leg higher into
Friday's payrolls report could tighten financial conditions sharply and
threaten the AI-led equity rally, while any stabilisation would likely extend
risk appetite across all three markets.
Source: Some content and data are excerpted from publicly available
market reports.
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