Energy and Financial Stocks Lead Global Markets in Q3 2026, While Asian Tech Shares Decline

Global stock markets saw mixed performances in the third quarter of 2026 (July–September), with energy and financial sector stocks emerging as the strongest performers. According to the Performance Insights – October 2026 report published by FTSE Russell under the London Stock Exchange Group (LSEG) on October 7, rising oil prices and expectations of higher interest rates supported energy and banking companies. However, technology stocks delivered uneven results, with sharp declines in hardware and semiconductor companies across the Asia-Pacific region weighing on overall market performance. Based on local currency returns, Japan's stock market led major markets with a 2.4% gain, followed by emerging markets and the UK, both at 2%. The Russell 1000 Index rose 1.9%, while the FTSE All-World Index gained 1.3%. In contrast, developed Europe excluding the UK declined 1.1%, while developed Asia-Pacific excluding Japan recorded a significant 9.7% fall. When measured in US dollars, Japan remained the best-performing major market, gaining 5.5%. Among developed markets, Singapore recorded the highest return at 10.9%, followed by Norway at 8.4% and Hong Kong at 8.1%. South Korea was the weakest performer, with its stock market falling 20.9%. In emerging markets, Brazil led with a 9.4% gain, followed by the UAE at 5.7% and Taiwan at 4.9%. Meanwhile, India's market declined 4%, affected by higher oil prices and pressure on the Indian rupee. At the sector level, energy stocks performed strongly across all major markets. The sector gained 16.5% in the US, 21.7% in the UK, 16.1% in Japan and 8.3% in emerging markets. The report attributed this growth largely to the 64.5% rise in Brent crude oil prices during the quarter, driven partly by renewed US-Iran tensions and concerns over possible supply disruptions. Financial stocks also delivered positive returns in most major markets. Japan's financial sector rose 14.3%, while developed Asia-Pacific gained 4.9%, emerging markets 5%, and developed Europe 4.8%. Japan's banking sector benefited from expectations of higher interest rates and increased interest income. However, the US financial sector declined 1%. Technology stocks showed contrasting performances across regions. The sector gained 7% in both the US and UK but declined 15.3% in Japan and 29.4% in developed Asia-Pacific. The report noted that falling hardware and semiconductor shares contributed significantly to the weakness in Asian markets, while improving software stocks provided support to the US market. Rising inflation concerns and expectations of higher interest rates also influenced global investment trends during the quarter. Higher energy prices increased concerns about inflation, pushing government bond yields upward in major economies. Overall, the report highlights how geopolitical tensions, oil prices, interest rate expectations and differences in sector performance shaped global stock markets during the third quarter of 2026.