Asian Markets Mixed as U.S. Shutdown Nears Resolution and Fed Rate Cut Bets Rise
Asian stocks traded mostly higher on Wednesday as optimism grew that the record-breaking U.S. government shutdown could soon come to an end, while fresh U.S. jobs data boosted expectations of a third consecutive Federal Reserve interest rate cut.
Japan’s Nikkei 225 gained 0.4% to close at 51,063.31, though sentiment was tempered by sharp losses in SoftBank Group, which fell 3.5% after plunging as much as 10.1% earlier in the day. The drop followed SoftBank’s disclosure that it had sold its entire $5.8 billion stake in Nvidia last month.
Elsewhere in the region, Hong Kong’s Hang Seng rose 0.8% to 26,913.90, while China’s Shanghai Composite edged up less than 0.1% to 4,006.17. South Korea’s Kospi climbed 1.1% to 4,151.36, and Australia’s S&P/ASX 200 slipped 0.2% to 8,799.50.
The regional gains followed signs of progress in Washington, where the U.S. Senate passed temporary legislation to reopen the federal government, raising hopes the shutdown could end as early as Wednesday.
On Wall Street, however, sentiment was more mixed. The Dow Jones Industrial Average climbed 1.2%, and the S&P 500 added 0.2%, while the Nasdaq Composite dipped 0.2% as concerns over AI-driven tech valuations weighed on the sector. Nvidia shares closed 3% lower after SoftBank’s exit, extending a broader pullback in technology names.
In commodities, gold prices rose above $4,100 an ounce in early Wednesday trading, while oil prices held steady — with West Texas Intermediate (WTI) at around $61 per barrel after a 1.5% rise on Tuesday, and Brent crude hovering above $65 per barrel.
