Asia Markets Mixed as U.S. Shutdown End Fails to Lift Shares
Asia markets closed mixed on Thursday after U.S. lawmakers ended the prolonged government shutdown. Equities in Japan and China rose modestly, while Hong Kong, Australia and South Korea saw declines. The Nikkei 225 added 0.2% and Topix gained 0.6%. Mainland indices like the Shanghai Composite and CSI 300 advanced 0.7% and 1.1%, respectively. Hong Kong’s Hang Seng eased 0.1%, Australia’s ASX 200 fell 0.4%, and South Korea’s Kospi dropped 0.4%.
Currencies also showed varied moves. The dollar strengthened to 149.10 yen. The Australian dollar climbed to 0.6641 USD on softer rate-cut expectations. The Korean won weakened amid risk aversion.
Investors remained cautious ahead of critical data. China’s October home prices unexpectedly fell 0.5% year-on-year. Industrial production decelerated to 4.7%. Market participants await upcoming Chinese trade and inflation figures, U.S. CPI, Fed minutes, and central bank meetings. Treasury yields hovered near recent highs, with the 2-year at around 4.58% and the 10-year at 4.65%.
Overall, Asia markets appear range-bound as the U.S. shutdown’s end fails to deliver a clear boost, leaving traders focused on data-driven drivers.
Neutral
The ending of the U.S. shutdown failed to ignite a decisive rally in Asia markets. Equities and currencies reacted unevenly, with key indices and FX pairs showing mixed performance. Investors remain focused on upcoming economic data—such as Chinese trade figures, U.S. CPI, and central bank policy updates—which suggests markets will stay range-bound until clearer catalysts emerge. Similar past events, like government funding resolutions, also led to neutral market reactions when no additional fiscal or monetary stimulus was provided.