US Shutdown Nearing Over: Asia Risk-On?
Asian stocks rose for a second day. Sentiment strengthened after progress was made toward ending the longest US government shutdown. The rally spread to many asset classes—from commodities to crypto. The Nikkei, Kospi, and Australian stocks opened higher. Wall Street was solid last night: the S&P 500 +1.5% and the Nasdaq 100 +2.2%.
White House support for a bipartisan deal makes government reopening “just days away.” Treasury yields fell, while the dollar weakened—a combination that supported risk assets. The US bond market was closed for Veterans Day, but there was a test of demand from a US$125 billion auction this week.
Investors returned to previously sold sectors—especially technology—in the hope that a steady stream of official economic data (jobs and inflation) would soon return to clarify the Fed's policy direction. Analysts believe the release of data after the government reopens could be the next risk-on trigger.
Solid commodities gained; aluminum stood out as capacity restrictions in China tightened. The index of Chinese companies listed in the US rose 2.3%; XPeng's ADRs surged 15%, and TSMC's rose 3.1%. In Japan, Prime Minister Sanae Takaichi is preparing an initial stimulus package to spur investment in key sectors. Indian assets are also being watched following signals of tariff reductions and a potential US-India trade deal. (asd)
Source: Newsmaker.id
