US Shutdown Eases, Asian Investors Accelerate Again?
The reopening of the US federal government is approaching. This has given investors relief as official economic data will begin to flow again, providing clues to the direction of monetary policy. Risk sentiment is strengthening: the Hang Seng Index is nearing a one-month high of 26,651, while the Hang Seng Tech index edged up 0.3%. In mainland China, the CSI 300 and Shanghai Composite Index fell 0.2%.
Blue-chip stocks rose: Baidu +2.9%, Xiaomi +2.2%, HSBC +2.0%, and AIA +1.7%. The boost comes from news that the US Senate is advancing plans to end the shutdown and President Donald Trump's support for a bipartisan agreement—opening the door for the release of official data and clarifying the economic outlook and interest rates.
However, the picture of the US labor market from recent private sector reports remains mixed, making the market rally vulnerable to faltering if official data is not supportive. Regional performance was also mixed: Japan's Nikkei 225 rose 0.7% and Korea's Kospi rose 2.2%, while Australia's S&P/ASX 200 fell 0.1%. In short, the risk-on mood prevails, but the market remains awaiting "confirmation" from data after the shutdown is finally over. (az)
Source: Newsmaker.id
