Asian Markets Rally as Saudi Oil Pipeline Restoration Lowers Inflation Fears

Asian stock markets traded mostly higher on September 30, 2026, led by a 4.2% surge in China and gains in Japan and Australia. The rally was primarily driven by a decline in crude oil prices after the Government of Saudi Arabia restored half of its East-West pipeline capacity. This development reduced investor concerns regarding global inflation and the potential for aggressive interest rate hikes by central banks.

In Japan, the Nikkei Stock Average rose between 1.28% and 1.5%, reaching as high as 66,460.68. Gains were concentrated in chip-related, banking, and metals stocks, with SoftBank Group and Sumitomo Metal Mining both rising 3.8%. However, the Ministry of Economy, Trade and Industry reported mixed economic data, noting that August retail sales rose 2.7% year-on-year, missing forecasts, while industrial production fell 1.7% month-on-month.

Other significant movements included a 10% jump in DroneShield shares following a contract with the United States Army valued at up to $500 million. Australia's S&P/ASX 200 also climbed 0.93%. Despite the gains, traders remain cautious as they await upcoming inflation data from the United States and the next monetary policy meeting of the Federal Reserve System.