Asian stocks rise as US shutdown nears end and Fed rate cut hopes grow

Asian markets climbed on Wednesday as optimism grew that the United States government shutdown was close to ending and expectations strengthened for another Federal Reserve interest rate cut.

Gains across Asia came after the US Senate approved a bill to reopen the government, with the House of Representatives expected to follow soon before the measure goes to President Donald Trump. If signed quickly, federal services could resume by Friday.

Speaking at a Veterans Day event in Arlington National Cemetery, Trump said, “We’re opening up our country—it should have never been closed,” and criticized Democrats for the extended shutdown, which began on October 1.

The shutdown left around one million federal employees unpaid, disrupted travel and social services, and delayed key economic data releases. Investors have welcomed signs of resolution, expecting government operations to restart and economic reporting to resume soon.

Analysts, however, cautioned that some delayed data could take time to compile. “September payrolls should be relatively quick to release, but data where collection was disrupted could take longer,” said Taylor Nugent of National Australia Bank.

Adding to market optimism, new data from private payrolls firm ADP showed US companies shedding an average of 11,250 jobs per week in October, reinforcing expectations that the Fed may cut interest rates again in December. Other recent reports, including one from Challenger, Gray & Christmas, showed layoffs at their highest level in 22 years, suggesting a cooling labor market.

Major Asian indexes, including those in Hong Kong, Tokyo, Shanghai, Sydney, Seoul, Singapore, Taipei, Wellington, and Manila, traded higher in early sessions.

On Wall Street, trading was more subdued. The Nasdaq ended slightly down, the S&P 500 edged up marginally, and the Dow Jones Industrial Average rose more than 1 percent, signaling a shift toward industrial stocks.

Tech shares continued to face pressure amid growing concerns about overvaluation following a year-long AI-driven rally. “Investors are questioning whether current price levels can be sustained, especially for AI-related stocks if interest rates stay high,” said Fabien Yip of IG.

Adding to the cautious tone, Japanese conglomerate SoftBank sold its entire $5.8 billion stake in US chipmaker Nvidia, causing Nvidia shares to fall three percent and SoftBank’s stock to drop as much as 10 percent in Tokyo.

Despite lingering uncertainty around tech valuations, the broader market mood across Asia remained upbeat, driven by relief over the likely end of the US shutdown and the prospect of monetary easing from the Fed.

Key figures at 0230 GMT

Tokyo - Nikkei 225: UP 0.2 percent at 50,927.29
Hong Kong - Hang Seng Index: UP 1.1 percent at 26,983.76
Shanghai - Composite: UP 0.3 percent at 4,015.03
Euro/dollar: DOWN at $1.1579 from $1.1588 on Tuesday
Pound/dollar: DOWN at $1.3143 from $1.3168
Dollar/yen: UP at 154.37 yen from 154.10 yen
Euro/pound: UP at 88.09 pence from 87.99 pence
West Texas Intermediate: DOWN 0.2 percent at $60.94 per barrel
Brent North Sea Crude: DOWN 0.1 percent at $65.07 per barrel
New York - Dow: UP 1.2 percent at 47,927.96 (close)
London - FTSE 100: UP 1.2 percent at 9,899.60 (close)