Asian markets climbed on Wednesday following progress toward ending the US government shutdown and fresh jobs data boosting expectations for a third consecutive Federal Reserve interest rate cut.
After passing the Senate, the US spending bill to reopen the government now moves to the House and then to President Donald Trump, raising hopes that services could resume as soon as Friday. The shutdown, which began on October 1, left over a million federal workers unpaid, delayed food benefits, and disrupted thousands of flights.
Investors welcomed the deal, although some key economic data remain delayed. Taylor Nugent at National Australia Bank noted that while September payroll figures should be released soon, other reports relying on disrupted surveys—such as October unemployment and consumer prices—may take longer.
Labour market data fuel expectations for Fed rate cut
US private payroll data from ADP showed companies shed 11,250 jobs per week on average in the four weeks ending October 25. Other reports indicate layoffs are at the highest level in 22 years, putting pressure on the Fed to cut rates while managing persistent inflation.
Wall Street sees mixed performance
While early Asian trading was broadly positive, Wall Street closed mixed. The Dow Jones rose 1.2 percent, the S&P 500 was slightly higher, and the Nasdaq fell slightly, reflecting concerns over elevated tech valuations. Analysts warned that AI-fuelled gains in tech stocks may be unsustainable if interest rates remain high.
Investors were also spooked by SoftBank selling all its Nvidia shares for $5.8 billion, contributing to a 3 percent fall in Nvidia and a 10 percent drop in SoftBank on Tokyo markets.
Key figures (as of 0230 GMT)
Asia:
Tokyo Nikkei 225: ↑ 0.2% at 50,927.29
Hong Kong Hang Seng: ↑ 1.1% at 26,983.76
Shanghai Composite: ↑ 0.3% at 4,015.03
Currencies:
Euro/dollar: ↓ $1.1579
Pound/dollar: ↓ $1.3143
Dollar/yen: ↑ 154.37
Commodities:
WTI crude: ↓ $60.94/bbl
Brent crude: ↓ $65.07/bbl
US/Europe:
Dow: ↑ 1.2% at 47,927.96
FTSE 100: ↑ 1.2% at 9,899.60
Markets remain cautiously optimistic amid improving US fiscal outlook but face ongoing uncertainty in tech valuations and global economic trends.
SR
