Asian Stocks Edge Higher After U.S. Government Reopens Following Record Shutdown
Asian markets mostly advanced on Thursday as investors welcomed the reopening of the U.S. government after President Donald Trump signed a funding bill that ended a historic 43-day shutdown. The move eased concerns over prolonged disruption to federal operations and the release of key U.S. economic data.
Global Relief After Record Shutdown
U.S. stock futures inched higher following the announcement, with traders expressing relief that Washington had reached a temporary resolution to the budget impasse. The record shutdown had left hundreds of thousands of federal employees without pay, disrupted air travel, and strained public services such as food banks.
“The shutdown had blocked not just spending, but also delayed a raft of federal economic data,” said Stephen Innes, managing partner at SPI Asset Management. “For markets, the only line that matters is simple: the lights are coming back on.”
Wall Street ended Wednesday’s session mixed but near all-time highs, signaling investor confidence in the broader economy’s resilience despite recent disruptions.
Regional Market Performance
Japan’s Nikkei 225 gained 0.3% to 51,213.35, supported by broad market optimism, though losses in heavyweight SoftBank Group limited further advances. The tech conglomerate dropped 3.4% after confirming it had sold its remaining shares in U.S. chipmaker Nvidia, extending a 3.5% slide from the previous session.
Hong Kong’s Hang Seng Index rose 0.3% to 27,009.65, while mainland China’s Shanghai Composite added 0.7% to 4,029.50, boosted by investor anticipation of new credit and lending data.
In Australia, the S&P/ASX 200 slipped 0.5% to 8,753.40, its third straight loss, after stronger-than-expected employment figures dampened hopes for near-term interest rate cuts. The country’s jobless rate fell to 4.3% in October from 4.5% in September, signaling a resilient labor market.
South Korea’s Kospi fluctuated before settling up 0.6% at 4,176.44 in afternoon trading, while Taiwan’s Taiex rose 0.2% and India’s BSE Sensex added 0.3%.
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Wall Street Near Records as AI Stocks Swing
In the U.S., the S&P 500 climbed 0.1% to 6,850.92, hovering near its all-time peak. The Dow Jones Industrial Average rose 0.7% to a new record high of 48,254.82, while the Nasdaq composite slipped 0.3% to 23,406.46.
Gains in airline stocks led the rally as investors bet on a rebound in air travel following the end of the shutdown.
Advanced Micro Devices (AMD) surged 9% after Chief Executive Lisa Su forecast annual compounded revenue growth above 35% over the next three to five years, citing “accelerating AI momentum.” Her comments reignited optimism in the artificial intelligence sector, though analysts warned that valuations remain stretched.
Nvidia shares were volatile after a sharp monthly decline of 4.6%, reflecting investor caution following years of explosive gains. Palantir Technologies, another high-profile AI stock, dropped 3.6%, ranking among the day’s biggest decliners on the S&P 500.
Despite concerns of overvaluation, AI-linked companies have been key drivers of the U.S. stock market’s recent record-setting rally. Some analysts, however, draw parallels to the early-2000s dot-com bubble, when tech stocks collapsed after a period of unchecked enthusiasm.
Energy and Currency Movements
In commodities trading, U.S. benchmark crude oil edged down 9 cents to $58.40 a barrel, while Brent crude, the international standard, slipped 8 cents to $62.37.
On currency markets, the U.S. dollar strengthened slightly to 154.93 Japanese yen from 154.70 yen, while the euro eased marginally to $1.1592 from $1.1594.
Analysts expect markets to stabilize in the coming days as investors digest fresh economic data delayed by the U.S. shutdown and monitor the Federal Reserve’s upcoming statements on interest rate policy.
Source: AP News – Asian shares are mostly higher after Trump signs bill ending US government shutdown
