Asian markets experienced a positive shift, largely influenced by recent gains in Wall Street, with analysts ignoring concerns surrounding a U.S. government shutdown.
Market Performance Across Asia
Japanese shares, particularly Hitachi, saw notable growth following a pivotal partnership announcement. Hitachi’s shares surged over 9% after revealing its collaboration with OpenAI to develop artificial intelligence infrastructure and data centers globally.
The Nikkei 225 index rose by 1.57%, while the Topix climbed 1.33%. However, the unemployment rate in Japan increased to 2.6% in August, surpassing economists’ predictions of 2.4% and up from 2.3% in July.
Economic Indicators and Trends
- S&P Global’s Japan services purchasing managers’ index (PMI) increased to 53.3 in September from 53.1 in August.
- This growth was fueled by a rise in domestic demand despite a decline in new export business.
- According to Annabel Fiddes of S&P Global Market Intelligence, services firms enjoyed solid growth, whereas manufacturers faced a significant production downturn.
Performance of Other Markets
In Australia, the ASX/S&P 200 recorded a slight increase of 0.27%. Conversely, Hong Kong’s Hang Seng Index fell by 0.47%, and the Hang Seng Tech Index decreased by 1.21%. India’s market also faced declines, with the Nifty 50 down 0.16% and the Sensex index losing 0.36%.
Chinese and South Korean markets remained closed for holidays during this trading session, impacting overall regional activity.
U.S. Market Impact
Despite the ongoing U.S. government shutdown, equity futures remained relatively stable during early Asian trading hours. The shutdown has not significantly shifted investor sentiment, as historically, such events have had minimal impact on market performance.
In the previous trading session, the S&P 500 increased by 0.06%, and the Dow Jones Industrial Average rose by over 78 points, reflecting a nearly 0.2% gain. The Nasdaq Composite saw a more notable increase of about 0.4%, largely driven by a significant rise in Nvidia shares, which reached an all-time high.
As investors monitor developments regarding the duration and implications of the governmental standoff, insights into its potential economic effects remain uncertain. The Labor Department’s activities, including the release of critical economic reports, have halted due to the shutdown.
