Asian markets had a mixed performance on Monday, as the US Congress managed to pass a last-minute deal over the weekend, averting a costly government shutdown. This development temporarily shifted investor focus away from the government shutdown issue and towards the outlook for US interest rates. Federal Reserve Chair Jerome Powell is scheduled to deliver a speech on Monday, and key jobs data was expected later in the week.
During Monday’s Asian trading session, Tokyo took the lead among gainers by surging 1.4 percent. This increase followed the release of the Bank of Japan’s Tankan survey, which indicated growing optimism among the country’s largest manufacturers. Business confidence improved for a second consecutive quarter in September.
Several Asian markets, including Taipei, Jakarta, Bangkok, and Singapore, saw gains on the day, while Hong Kong, South Korea, and India were closed due to holidays. Mainland China’s markets were also closed for an extended week-long holiday.
However, Sydney, Wellington, Kuala Lumpur, and Manila experienced declines.
There was a sense of relief in financial markets as they avoided a government shutdown, but this relief is temporary.
The focus remains on interest rates and U.S. Federal Reserve hawkishness as the primary drivers of market sentiment in the coming weeks.
(Source: The Jakarta Post)
