Malaysia’s exports surged 54.5% year-on-year to a record MYR 215.1 billion in September 2026, accelerating from 45.5% growth in August and marking the fastest pace since April 2021. Growth was mainly driven by manufactured goods, which climbed 58.6% and accounted for 89.1% of total exports, particularly electrical and electronic products (69.2%). Exports of mining products also soared 56.3%, due to increased shipments of tin (130.2%), crude petroleum (68.9%), metalliferous ores and metal scrap (68.3%), condensates and other petroleum oil (51.2%), and liquefied natural gas (45.7%). By contrast, agricultural exports declined 5.7%, reflecting lower shipments of palm oil and palm-based products (-9.1%) and sawlogs (-29.6%). Exports to all ten major destinations registered growth, led by Taiwan (175.2%), the US (89.9%), Singapore (50.4%), the EU (35.3%), and China (22.1%). For January–September, exports totaled MYR 1,571.3 billion, up 34.0% from the same period last year.

Japan’s 10-year government bond yield declined to around 2.9% on Monday, hovering near five-week lows after Prime Minister Sanae Takaichi pledged to “appropriately” manage annual debt issuance, emphasizing the importance of fiscal discipline and economic resilience in supporting the yen and maintaining stable public finances. She highlighted the need to balance economic growth with fiscal responsibility as Japan faces a debt burden of approximately $7 trillion, the largest among advanced economies, in an effort to reassure investors. Meanwhile, Bank of Japan Governor Kazuo Ueda said underlying inflation was already close to the central bank’s 2% target, signaling a mildly hawkish stance. He also attributed inflationary pressures to a moderate economic recovery and tight labor market conditions.

China’s new home prices across 70 cities fell 2.8% year-on-year in September 2026, easing from a 3.0% decline in the previous month and marking the 39th consecutive month of annual contraction. Still, the pace of decline was the slowest since December 2025, suggesting that continued policy support from Beijing is helping stabilise the property market. Among major cities, price declines moderated in Guangzhou (-1.1% vs -1.9% in August), Shenzhen (-1.0% vs -2.3%), Chongqing (-2.4% vs -3.1%) and Tianjin (-3.6% vs -4.1%). Meanwhile, the decline deepened in Beijing (-2.7% vs -2.3%). Shanghai remained the standout, with new home prices rising 2.8% year-on-year, although growth eased from 3.0% in August. On a monthly basis, new home prices edged down 0.1%, extending recent declines.

The Nikkei 225 Index fell 2.2% to below 64,000 on Monday, hitting a one-month low as technology shares extended their decline amid mounting pressure on the artificial intelligence trade. Investors are increasingly questioning whether massive spending on AI infrastructure will generate sufficient returns, particularly as Japanese firms remain deeply involved in the global AI expansion. Major decliners included Kioxia (-1.6%), Advantest (-4%), SoftBank Group (-5.3%), Lasertec (-5.2%), and Taiyo Yuden (-6.2%). Kioxia shares also faced additional downside risks after reports showed that outstanding leveraged long positions in the stock reached around ¥920 billion last week, the highest among companies listed on the Tokyo Stock Exchange. Meanwhile, investors are turning their attention to upcoming trade and inflation data for further clues about the health of Japan’s economy.

The euro fell as much as 0.5% to $1.118 on Monday before recovering some losses, as widespread protests across France and other European countries escalated into violent clashes between police and demonstrators over the weekend. Unrest spread across major cities in Belgium, Italy, and Portugal, weighing on sentiment toward the common currency. Meanwhile, Moscow and Kyiv continued targeting energy infrastructure, with Ukrainian strikes igniting an oil export terminal and a storage depot in St. Petersburg on Sunday, adding to geopolitical uncertainty. Rising energy costs threatened to weigh on economic growth while sustaining inflationary pressures across Europe, leaving the euro vulnerable to further declines if tensions intensify. The currency has also come under constant pressure since September amid growing concerns over France’s fiscal outlook and the European Central Bank’s cautious stance on interest rate increases.

Crude oil prices fell below $101 per barrel on Monday but retained most of last week’s 10% surge, as escalating hostilities in the Middle East and Eastern Europe kept supply risks elevated. Clashes between Saudi Arabia and Iran-backed Houthi rebels showed little sign of abating, with a Saudi helicopter crashing near the border with Yemen and the Houthis targeting Yanbu, a key oil export hub. Three tankers were also damaged in the Strait of Hormuz over the weekend as Iran’s IRGC navy maintained that the waterway remained closed and vessels could pass only with its authorization. In Europe, Ukrainian attacks sparked fires at an oil export terminal and a storage depot in St. Petersburg on Sunday, as Kyiv launched more than 1,000 drones at Russia in one of the war’s largest aerial assaults. Meanwhile, US President Donald Trump said he had reached a diesel export agreement with Russia and postponed additional sanctions to avoid jeopardizing peace negotiations with Ukraine.